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The initial public offering of Kross Ltd. opened for bidding for the final day on Wednesday. The issue was subscribed 2.56 times on the second 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 is set at Rs 228–240 per share. 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.
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.
Kross IPO – Issue Details, Financials, Strengths, Risks, Investment Rationale And More: DRChoksey
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.
IPO-Bound Kross Aims To Cash In On Shift In India’s Trucking Industry
Kross IPO Subscription Status
The IPO has been subscribed 8.43 times as of 2:18 p.m. on Wednesday.
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Institutional investors: 5.66 times.
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Non-institutional investors: 13.61 times.
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Retail investors: 7.79 times.
Kross IPO GMP Today
The grey market premium of Kross is Rs 50 as of 9:02 a.m., implying a 20.83% gain over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 290 per share.
GMP is not an official price quote for the stock and is based on speculation.
Watch The IPO Adda Here
Kross IPO – Issue Details, Peer Comparison, Financials, Strategies, Risks And More: Anand Rathi
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
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