Kross Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹240
Per ShareLot Size
62 Shares
Minimum Investment
₹14,880
Issue Size
₹500 Cr
Face Value
₹5
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Kross Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
99.99%
Issue Type
Book Building
ISIN
INE0O6601022
About the Company
Kross Limited is a diversified player focused on manufacturing and supply of trailer axle and suspension assembly and a wide range of forged and precision machined high performance safety critical parts for medium and heavy commercial vehicles ("M&HCV") and farm equipment segments. The Company is widely recognized as one of the prominent manufacturers of trailer axles and suspension assembly in India. In 2019, The company commenced manufacture and sale of trailer axle and suspension assemblies and has witnessed robust growth between Fiscal 2021 and Fiscal 2024.
Industry Overview
In fiscal year 2024, the M&HCV segment exhibited a de-growth of 3% over the fiscal year 2023. In fiscal year 2023, MHCV sales recorded a growth of 40%, this recovery brought MHCV sales to approximately 90% of the level recorded in fiscal year 2019, a notable milestone. The resurgence in economic activities across various sectors played a pivotal role in driving this recovery. Tractor trailers were the fastest-growing category in the MHCV segment, witnessing a growth of 71% CAGR between fiscals 2021 and 2024, followed by the MCV haulage and MAV haulage segments at 50% CAGR and 32% CAGR, respectively. Tippers grew at 14% CAGR, whereas ICVs clocked 1% growth during the same period.
Company History
Kross Limited was incorporated as "Kross Manufacturers (India) Private Limited", as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated May 9, 1991, issued by the Registrar of Companies, Bihar at Patna. Thereafter, the Registered Office of the Company was changed from 214, Ashiana Centre Adityapur, Jamshedpur - 831013 to M-4, Phase VI, Gamharia, Adityapur Industrial Area, Jamshedpur - 832108, Jharkhand, India. Subsequently, the name of the Company was changed from "Kross Manufacturers (India) Private Limited" to "Kross Private Limited" pursuant to a fresh certificate of incorporation issued by the Registrar of Companies Jharkhand at Ranchi dated September 26, 2016. Further, the name of the Company was changed upon conversion from a private limited company "Kross Private Limited", to a public limited company "Kross Limited" pursuant to a special resolution passed by its shareholders on January 13, 2017 and a fresh certificate of incorporation issued by the Registrar of Companies Jharkhand at Ranchi dated January 17, 2017.
Products & Services
- The Company is widely recognized as one of the prominent manufacturers of trailer axles and suspension assembly in India.
Growth Strategy
- Expand capacities at its existing manufacturing facilities to increase manufacturing scale for its existing products and creation of new products.
- Create manufacturing capabilities in axle beam extrusion and backward integration capabilities into the seamless tube.
- Expand its geographical reach through growing exports.
- Continuing focus on reduce operating costs and improving operational efficiency.
- Improve its financial profile.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of up to 2,08,33,332 equity shares^ of face value of Rs. 5 each of the company for cash at a price of Rs. 240 per equity share (including a share premium of Rs. 235 per equity share) ("Offer Price") aggregating up to Rs. 500.00 crores^ ("Offer") comprising a fresh issue of up to 1,04,16,666 equity shares of face value of Rs. 5 each by the company aggregating up to Rs. 250.00 crores^ (the "Fresh Issue") and an offer for sale of up to 1,04,16,666 equity shares of face value of Rs. 5 each (the "Offered Shares") aggregating up to Rs. 250.00 crores^ (the "Offer for Sale"), comprising up to 7,000,000 equity shares of face value of Rs. 5 each aggregating up to Rs. 168.00 crores^ by Sudhir Rai , up to 3,416,666 equity shares of face value of Rs. 5 each aggregating up to Rs. 82.00 crores^ by Anita Rai (the "Promoter Selling Shareholders"). The offer shall constitute 32.30% of the post-offer paid-up equity share capital of the company. ^Subject to finalisation of basis of allotment
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Long standing relationship with large OEMs and their tier one suppliers, domestic dealers and fabricators for its trailer axle and suspension business complemented by a diversified network of dealers for its trailer axle and suspension assembly business.
- Wide recognition as one of the prominent manufacturers of trailer axles and suspension assemblies in India and one of the few players domestically with the competency to manufacture trailer axles and suspension assembly in-house.
- Diversified product portfolio with a focus on continuous value addition.
- Integrated manufacturing operations coupled with in-house product and process design capabilities which offer scale, flexibility and comprehensive solutions.
- Track record of sustained growth and strong financial performance.
- Customer concentration risk - its top five customers contributed a significant portion (more than 66.00% in each of the previous three Fiscals) of its revenues. The loss of a major customer or reduction in demand for its products from any of its major customers may adversely affect its business, financial condition, results of operations and prospects.
- End-user industry risk - Demand for its products is linked to growth and trends in sales of vehicles by its customers. Decline in sales of its customers may adversely affect the demand for the company products which in turn would adversely impact its business, financial condition, results of operations and prospects.
- Product concentration risk - the company derives a portion of its revenue from the sale of trailer axle and suspension assemblies for medium and heavy commercial vehicles ("M&HCV"). Any reduction in demand for its key products on account of regulatory changes or changes in technologies including but not limited to shift in renewable/ green energy would have a material adverse effect on its business, financial condition, results of operations and cash flows.
- The company derives a substantial portion of its revenue from supply of trailer axle and suspension assembly and a wide range of forged and precision machined high performance safety critical parts for medium and commercial vehicles ("M&HCV") and farm equipment segments. Any change in demand for such components would have a material adverse effect on its business, financial condition, results of operations and cash flows.
- Manufacturing facility disruption risk - its manufacturing facilities are subject to operating risks. Any shutdown of its manufacturing facilities of its existing or future manufacturing facilities or other production problems caused by unforeseen events may reduce sales and adversely affect its business, cash flows, results of operations and financial condition.