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Kross Limited Set to Launch Rs 500 Crore IPO on September 9, 2024

BILKULONLINE

Ahmedabad, Sep 8: Kross Limited, a leading manufacturer of trailer axles, suspension assemblies, and critical safety parts for medium and heavy commercial vehicles (M&HCVs) and farm equipment, is set to launch its Rs 500 crore initial public offering (IPO) on September 9, 2024. The IPO will close on September 11, 2024.

The Jamshedpur-based company, which has been a major player in the automotive components industry for over three decades, will offer a combination of a fresh issue of equity shares worth Rs 250 crore and an Offer for Sale (OFS) of Rs 250 crore by the promoters. The OFS includes Rs 168 crore worth of shares by Sudhir Rai and Rs 82 crore by Anita Rai. The price band has been set at Rs 228-240 per share.

Kross Limited has secured Rs 150 crore from anchor investors ahead of the IPO. Notable investors include LIC Mutual Fund, ICICI Prudential MF, Axis MF, Kotak Mahindra MF, and Max Life Insurance Company, among others. The funds raised through the fresh issue will be utilized for expanding production capacity and enhancing product offerings, with plans to introduce new lines for hydraulic covers and front brake drums.

Kross Limited operates five state-of-the-art manufacturing facilities in Jamshedpur, equipped with the latest technologies in forging, machining, and robotic systems. The company caters to original equipment manufacturers (OEMs) like Ashok Leyland and Tata International, while also securing new contracts with global companies such as Leax Falun AB and a Japanese OEM.

The IPO will be a book-built issue, and the company’s strong financial performance, with operating revenue growing at a CAGR of 44.40% between FY 2022 and FY 2024, positions it as a promising opportunity for investors.

Sudhir Rai, Chairman and Managing Director of Kross Limited, along with Directors Sumeet Rai and Kunal Rai, and CFO Malay Shah from Equirus Capital Private Limited, addressed the media in Ahmedabad, highlighting the company’s future growth strategies and commitment to innovation.

For more details, investors can participate in the IPO starting September 9, 2024.

(Disclaimer: Investors must thoroughly study the company profile and details before investing)

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