Kross Limited IPO: Date, Price, Details

In a significant move that’s drawing attention from investors and industry watchers alike, Kross Limited is set to launch its Initial Public Offering (IPO) from September 9 to September 11, 2024. This eagerly anticipated IPO marks a pivotal moment in the company’s three-decade journey since its inception in 1991.

The upcoming IPO aims to raise up to ₹500 crore, with shares priced in the band of ₹228 to ₹240 per share. This public offering comprises a fresh issue of shares worth ₹250 crore and an offer for the sale of existing shares also worth ₹250 crore. With a face value of ₹5 per share and a minimum lot size of 62 shares, Kross Limited is making its shares accessible to a broad range of investors.

As Kross Limited prepares to list on both the BSE and NSE on September 16, 2024, investors are keenly analysing the company’s strong financials, which show consistent growth in revenue and profit over the past three years. 

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About Kross Ltd.

Since its inception in 1991, Kross Limited has evolved from its original name, Kross Manufacturers (India) Private Limited, to become a leading manufacturer and supplier in the commercial vehicle and agricultural equipment industry. The company specialises in crafting high-precision, safety-critical components for medium and heavy-duty commercial vehicles (M&HCV) as well as farming machinery.

Kross Limited’s product range is extensive and diverse. It encompasses crucial elements such as trailer axles and suspensions, alongside a wide array of meticulously engineered parts.

The company’s distribution network is robust and multifaceted. It directly serves major original equipment manufacturers (OEMs) in the tractor and M&HCV sectors. Additionally, Kross supplies its products to domestic dealers and manufacturers of trailer axles and suspensions, who in turn cater to OEMs in the M&HCV market. 

This strategic approach allows Kross Limited to maintain a strong presence across various segments of the commercial vehicle and agricultural equipment supply chain.

Kross Limited IPO details

IPO Date	September 9 to September 11, 2024
Listing Date	September 16, 2024
Face Value	₹5 per share
Price Band	₹228 to ₹240 per share
Lot Size	62 Shares
Total Issue Size	20,833,334 shares(aggregating up to ₹500.00 Cr)
Fresh Issue	10,416,667 shares(aggregating up to ₹250.00 Cr)
Offer for Sale	10,416,667 shares of ₹5(aggregating up to ₹250.00 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Share holding pre issue	54,092,756
Share holding post issue	64,509,423

Kross Limited Financials

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets (in Cr.)	352	250.57	197.82
Revenue (in Cr.)	621.46	489.36	297.88
Profit After Tax (in Cr.)	44.88	30.93	12.17
Net Worth (in Cr.)	146.81	102.11	72.4
Reserves and Surplus (in Cr.)	119.76	88.58	58.88
Total Borrowing (in Cr.)	117.9	88.26	86.06

Also read: Initial Public Offering (IPO): Types, Benefits, and Upcoming IPOs in 2024

Kross Ltd. IPO objectives

Kross Limited proposes to use the Net Proceeds from its Initial Public Offering (IPO) to fund four key objectives:

Capital Expenditure for Machinery and Equipment

The company plans to allocate a portion of the IPO proceeds towards purchasing new machinery and equipment. This investment aims to enhance production capacity, improve manufacturing efficiency, upgrade existing technology, expand product lines, and meet growing market demand.

Repayment or Prepayment of Outstanding Borrowings

A significant portion of the IPO funds will be used to repay or prepay, either fully or partially, certain outstanding loans from banks and financial institutions. This strategic move is expected to reduce the company’s debt burden, lower interest expenses, improve the company’s debt-to-equity ratio, enhance financial flexibility for future growth initiatives, and potentially improve credit ratings.

Funding Working Capital Requirements

Kross Limited intends to allocate funds to meet its working capital needs. This will help the company maintain optimal inventory levels, extend favourable credit terms to customers, ensure timely payments to suppliers, and support day-to-day operational expenses. 

General Corporate Purposes

A portion of the IPO proceeds will be reserved for general corporate purposes. This may include funding research and development initiatives, supporting marketing and branding efforts, pursuing potential acquisitions or strategic partnerships, investing in employee training and development programs, upgrading IT infrastructure, and addressing unforeseen expenses or opportunities. 

Interested in Kross IPO? Click to apply here

Dhanush provides an efficient way to apply and offers expert analysis, which could be beneficial for those looking to invest in this new stock offering. Remember to carefully evaluate the opportunity and consider how it aligns with your personal financial objectives before committing to any investment.

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