Kross IPO

About Kross IPO

Auto parts manufacturer Kross Ltd is gearing up to launch its ₹500-crore Initial Public Offering (IPO) on 9th September 2024, opening for public subscription. The three-day IPO will close on 11th September, with anchor investor bidding available from 6th September.

The IPO consists of a fresh issue of equity shares amounting to ₹250 crore and an Offer for Sale (OFS) of up to ₹250 crore by the promoters. The funds from the fresh issue will be directed towards acquiring new machinery and equipment, repaying debt, and supporting the company’s working capital needs. Additionally, a portion of the proceeds will be allocated to general corporate purposes.

Kross Ltd, based in Jamshedpur, aims to leverage this public offering to strengthen its financial position and enhance operational capabilities. Retail investors will have the opportunity to participate in this significant capital-raising initiative, which is expected to bolster the company’s growth and expansion plans.

About Kross Limited

Kross Ltd is a diversified player focused on the manufacturing and supply of a wide range of forged and precision machine parts for medium and heavy commercial vehicles (i.e. M&HCV) and farm equipment segments.

As such, they offer a diversified portfolio of high-performance and safety-critical components for the M&HCV and farm equipment segments. However, they are considered a specialist in manufacturing safety critical components for the M&HCV segment, which include axle shafts, companion flanges, anti-roll bars and stabiliser bar assembly, suspension linkages, etc. They also produce a wide variety of tractor components for the hydraulic lift arrangement, power take-off shafts and front axle spindles.

They supply their products to a diversified client base, which includes large original equipment manufacturers (OEMs) of M&HCV and tractors, as well as the top suppliers to these OEMs. They also have domestic dealers and fabricators as clients for their trailer axle and suspension business.

The MHCV industry is expected to grow at a compound annual growth rate of 2-4% between FY 2024 to FY 2029. Between the fiscal years of 2018 to 2023, the Indian tractor industry had registered a 5.4% CAGR. With the sectors that buy its products showing growth prospects, the revenue of Kross Ltd may also grow.

Industry Outlook:

1. The domestic commercial vehicle (CV) industry saw a strong recovery in fiscal year 2023, with a growth rate of 34% over 2022 and reaching 96% of pre-pandemic levels. This resurgence, driven by demand and increased government spending, positions the industry for continued growth.
2. The bus sector experienced a significant 27% growth in fiscal year 2024, driven by the resumption of schools and increased tourism. This robust growth suggests a promising demand for bus-related components.

Kross IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

1. Funding of capital expenditure requirements towards the purchase of machinery and equipment.
2. Repayment of certain outstanding borrowings availed from banks and financial institutions.
3. Funding the working capital requirements of the company.
4. General corporate purposes.

Peer Details

The companies considered by Kross Limited as its peers include:

1. Ramkrishna Forgings Limited
2. Jamna Auto Industries Limited
3. Automotive Axles Limited
4. GNA Axles Limited
5. Talbros Automotive Components Limited

How to Check the Allotment Status of the Kross IPO?

Steps to check IPO allotment status on Angel One’s app:

• Log in to the Angel One app
• Go to the individual order details page of the IPO that you had applied for.
• Check the IPO allotment status. As such, Angel One will notify you of your IPO allotment status via push notification, email, and SMS.

Contact Details of Kross IPO

• Registered office: M-4, Phase VI, Gamharia, Adityapur Industrial Area, Jamshedpur - 832108, Jharkhand, India
• Phone: +91 0657 2203812
• E-mail: investors@krossindia.com