The initial public offering (IPO) of Kross Ltd opened for subscription and was subscribed 34% on the first day. By noon, retail investors showed the most interest, subscribing to 62% of the issue, followed by non-institutional investors at 14%. The portion reserved for qualified institutional buyers received fewer bids.
Kross Ltd’s Rs 500-crore IPO includes a fresh equity issue of up to Rs 250 crore and an offer for sale (OFS) of up to Rs 250 crore by the company’s promoter shareholders, Sudhir Rai and Anita Rai, who are offloading part of their stakes.
The company has set a price band of Rs 228-240 per share, with investors required to bid for 62 shares per lot. The grey market premium (GMP) ahead of the issue was approximately Rs 50, suggesting a potential 21% premium over the issue price.
Financial experts recommend subscribing to Kross Ltd’s IPO, considering the company’s healthy growth track record and expansion strategies. Despite a higher P/E ratio of 34.5x compared to industry averages, its future growth potential and forward integration strategies make it an attractive investment.
Kross Ltd is a leading manufacturer of forged and machined components in India, with a growing global export presence. The company serves key clients like Ashok Leyland and Tata International DLT, manufacturing high-performance components for the commercial vehicle and tractor sectors. It operates five facilities in Jamshedpur, specializing in product design, development, and manufacturing.
For the fiscal year ending March 2024, Kross Ltd saw a 27% increase in revenue, reaching Rs 620 crore, and a 45% rise in net profit, totaling Rs 44.8 crore. The company’s revenue, EBITDA, and net profit grew at a compound annual growth rate (CAGR) of 44.4%, 65.5%, and 91.8%, respectively, over FY22-24.