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The initial public offering of Kross Ltd. was fully subscribed on the second day on Tuesday, led by demand from retail investors. The issue received bids of 0.88 times, or 88%, on the first day. The company is looking to mop up Rs 500 crore through its maiden share sale. The offering consists of a fresh issue as well as an offer for sale, each worth Rs 250 crore.
The price band for the IPO has been set at Rs 228-240 per share. It will close on Sept. 11. The market value of the company at the upper end of the price band is Rs 1,548 crore.
The company is a diversified player in manufacturing and supply of trailer axle and suspension assembly. It also offers a wide range of forged equipment for medium and heavy commercial vehicles and farm equipment segments.
It raised Rs 149 crore from anchor investors on Friday ahead of its initial public offering. The company allotted 62.49 lakh shares at Rs 240 apiece to 19 anchor investors.
It commenced manufacturing and sale of trailer axle and suspension assemblies in 2019 and has witnessed robust growth over the past three fiscal.
Kross IPO: All You Need To Know
Issue Details
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Issue opening: Sept. 9.
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Issue closing: Sept. 11.
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Issue price: Rs 228-240 per share.
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Fresh issue: Rs 250 crore.
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Offer for sale: Rs 250 crore.
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Total issue size: Rs 500 crore.
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Market value at upper end of price band: Rs 1,548 crore.
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Use Of Proceeds
The company will use the proceeds to primarily repay borrowing and fund future capital expenditure. It will be repaying debt of about Rs 90 crore, while funding capex with Rs 70 crore raised in the IPO. The company is looking to incur capex for funding purchase of machinery and equipment.
It will also be reserving about Rs 30 crore for funding working capital.
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Kross IPO Subscription Status
The IPO has been subscribed 1.14 times as of 10:30 a.m. on Tuesday.
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Institutional investors: Nil.
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Non-institutional investors: 0.91 times.
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Retail investors: 1.89 times.
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