Kross Limited’s IPO consists of a fresh issue of shares worth INR 250 crores and an offer to sell 250 crores of existing equity shares, aggregating to INR 500 crores. The company will use the funds raised for machinery and equipment, repay loans, manage working capital, and address general corporate needs.
Kross Ltd IPO – Important Dates
| Kross Limited IPO Date | September 9, 2024 to September 11, 2024 |
| Kross Limited IPO Listing Date | September 16, 2024 |
| Kross Limited IPO Price | INR 228-240 per share |
| Kross Limited IPO Lot Size | 62 Shares |
| Kross Limited IPO Total Issue Size | INR 500 crores |
| Kross Limited IPO Basis of Allotment | September 12, 2024 |
| Kross Limited IPO Initiation of Refunds | September 13, 2024 |
| Kross Limited IPO Credit of Shares to Demat | September 13, 2024 |
| Kross Limited IPO Issue Type | Book Built Issue IPO |
| Kross Limited IPO Listing At | BSE, NSE |
Read more Kross Ltd IPO
Kross Ltd IPO – Company Profile
Kross Limited is a leading diversified manufacturer in India, specializing in trailer axles, suspension assemblies, and precision machined parts for medium and heavy commercial vehicles and farm equipment. They are recognized for rapid growth, proprietary product development, and over three decades of industry expertise.
They are a vertically integrated Indian manufacturer with in-house design, forging, casting, and machining capabilities for trailer axles and suspension assemblies. Mobile service operations and Salesforce software enhance complaint resolution. They are operating from five ISO-certified facilities in Jamshedpur, Jharkhand.
They manufacture diverse components with up to 40 kg forging capacity. Backward integration includes a new casting facility (Unit V) with a high-pressure mold line foundry. Ongoing expansion involves adding production lines for hydraulic tractor covers and an in-house machining line for hubs and brake drums.
Kross Ltd IPO Fundamental Analysis
Kross Limited’s financial analysis reveals a mixed performance. Revenue growth reflects strong business expansion, with increased profitability and higher EPS. Improved RoNW and inventory turnover ratio indicate efficient operations and investor confidence.
- 1. Revenue Trend: The revenue increased from ₹1,837.69 millions in March 2022 to ₹2,974.55 millions in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 4,886.28 lakhs.
- 2. Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion.
- 3. Profitability: The profit after tax (PAT) has significantly increased from ₹47.67 million in March 2022 to ₹309.31 million by March 2024. This improvement in profitability could be a source of confidence among investors.
- 4. Earnings per Share (EPS): The diluted EPS has risen from ₹0.88 in March 2022 to ₹5.72 by March 2024, reflecting higher earnings per share for investors.
- 5. Return on Net Worth (RoNW): The RoNW has risen from 7.96% to 30.29%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- 6. Financial Position: Total assets have increased, suggesting potential business growth.
- 7. Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover Ratio, which might suggest stronger sales or efficient inventory management.
Kross IPO Financial Analysis
| Particular | As of 31 March 2021 | As of 31 March 2022 | As of 31 March 2023 |
| Revenue (₹ in Million) | 1,837.69 | 2,974.55 | 4,886.28 |
| Equity (₹ in Million) | 599.09 | 724.04 | 1,021.06 |
| Expenses (₹ in Million) | 1,783.71 | 2,815.71 | 4,476.47 |
| Profit and Loss After Tax (₹ in Million) | 47.67 | 121.69 | 309.31 |
| RoNW (%) | 7.96 | 16.81 | 30.29 |
| NAV per Equity Share (₹) | 11.08 | 13.39 | 18.88 |
| Diluted EPS only (₹) | 0.88 | 2.25 | 5.72 |
| Total Assets (in millions) | 1,740.67 | 1,971.98 | 2,494.59 |
| Total Liabilities (in millions) | 1,141.58 | 1,247.94 | 1,473.53 |
| Inventory turnover ratio | 4.27 | 7.19 | 7.86 |
Kross Ltd Peer Comparison
Kross Limited exhibits robust revenue and profit growth, with high EPS and RoNW. Ramkrishna Forgings and Jamna Auto Industries show strong financial metrics, while Automotive Axles and GNA Axles demonstrate high returns. Talbros Automotive Components also maintains solid performance.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Kross Limited | 4,886.28 | 5 | NA | 5.72 | 5.72 | 30.29 | 18.88 |
| Ramkrishna Forgings Limited | 31,928.95 | 2 | 46.91 | 15.52 | 15.43 | 18.77 | 82.67 |
| Jamna Auto Industries Limited | 23,253.18 | 1 | 26.20 | 4.23 | 4.21 | 21.47 | 19.66 |
| Automotive Axles Limited | 23,237.01 | 10 | 22.44 | 107.22 | 107.22 | 21.34 | 502.46 |
| GNA Axles Limited | 15,829.34 | 10 | 6.89 | 60.66 | 60.66 | 18.22 | 332.88 |
| Talbros Automotive ComponentsLimited | 6,471.83 | 10 | 5.22 | 45.02 | 45.02 | 15.12 | 297.69 |
Kross Limited IPO Objective
The main objective of Kross Limited is to allocate INR 70 crores for machinery, INR 90 crores for loan repayment, INR 30 crores for working capital, and the remaining funds for diverse corporate purposes, encompassing growth, marketing, acquisitions, employee welfare, taxes, and operational needs.
- Funding of capital expenditure requirements of the Company towards the purchase of machinery and equipment: With a focus on expanding and growing the manufacturing capabilities to meet the growing requirement in the auto components and aggregate manufacturing sector, the company plans to acquire and equip its existing manufacturing. The Company plans to utilize INR 70 crores out of the Net Proceeds to purchase manufacturing equipment, and the remaining expenses shall be met from their internal accruals.
- Repayment or prepayment, in whole or in part, of all or a portion of certain outstanding borrowings availed by their Company from banks and financial institutions: The Company plans to utilize INR 90 crores from the Net Proceeds towards prepayment or scheduled repayment of all or a portion of the outstanding borrowings availed by their Company.
- Funding working capital requirements of the Company: The Company plans to utilize INR 30 crores from the Net Proceeds to fund its working capital requirements. Typically reliant on internal accruals and external financing, the business aims to enhance operational liquidity through this allocation.
- General corporate purposes: The Company plans to deploy the balance funds towards the general corporate goals, including strategic initiatives, funding for growth, marketing strength, acquisitions, corporate needs, business expenses, commissions, fixed assets, employee welfare, taxes, and general operational requirements.
Kross Limited IPO Risks and Challenges
Kross Limited encounters substantial exposure, depending heavily on its top five customers for revenue and facing concentration issues with over 30% of specific products. Operational hurdles at manufacturing facilities may adversely affect business, financial condition, and operations.
- The company relies heavily on its top five customers for its revenue. The potential loss of these customers, due to various reasons such as contract disputes or changes in their strategies, could adversely impact business, financial condition, and cash flows. Uncertainty exists despite a lack of recent significant customer losses.
- The company faces product concentration risk, with over 30% of revenue derived from trailer axle and suspension assemblies for medium and heavy commercial vehicles. The top three product segments contribute over 90%, making the business vulnerable to adverse effects from declining demand for these critical products.
- With manufacturing facilities in Jamshedpur, the Company faces operational risks like plant closures, supply chain issues, equipment breakdowns, labor disputes, and political tensions. Failure to address disruptions may lead to operational slowdown or shutdown, impacting business, results, and financial condition. No recent malfunctions, but future uncertainties exist.
Kross Limited IPO – Industry & Market Potential
India’s PLI scheme, active 2022-2029, aims for global competitiveness, supply chain integration, and reduced reliance on Chinese raw materials. Anticipated benefits include economic growth, job creation, and increased industrial construction spending.
In August, India’s Index of Industrial Production (IIP) surged 10.3% YoY, which was attributed to revived export-oriented sectors, robust domestic demand, and government capex. Manufacturing, infrastructure, and construction goods led growth. The second-quarter IIP grew 8.2%, indicating buoyant domestic demand supported by optimistic consumer and manufacturer sentiments.
Between fiscals 2018 and 2023, domestic commercial vehicle (CV) sales grew at a 2.4% CAGR, while fiscals 2021 to 2023 saw a remarkable 30.2% CAGR. Industry recovery in 2018 and 2019, a dip in fiscal 2020 due to the BS-VI transition, and pandemic-induced challenges shaped the sector’s trajectory.
Kross Limited IPO – Type of Offer
Kross Limited plans a fresh issue of shares, seeking INR 250 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 250 crore existing shares.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 250 crores. The company intends to utilize the proceeds from the fresh issue for machinery and equipment, repay loans, manage working capital, and address general corporate needs.
2. Offer for sale: Kross Limited is offering to sell 250 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Sudhir Rai | 1,680 |
| Anita Rai | 820 |
Kross Limited IPO Offer Size
The offer size of Kross Limited’s IPO is INR 500 crores. This comprises a new issuance of shares totaling INR 250 crores and the sale of 250 crores of existing equity shares. The funds generated will be utilized for machinery and equipment, repay loans, manage working capital, and address general corporate needs.
Kross Ltd IPO Allotment Structure
Kross Limited allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
Read more Kross Ltd IPO Allotment Status
How to apply for a Kross Limited IPO?
To apply for the Kross Limited IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Kross Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Kross Limited’s IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more Kross Ltd IPO Day 1 Subscription
How to Check Kross Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Kross Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Kross Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Kross Limited IPO:
Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Kross Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
BSE and NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Read more Kross Ltd IPO Day 2 Subscription
Kross Limited IPO Offer Registrar
The registrar for the Kross Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium Tower B, Plot No. 31, 32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad, 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Read more Kross Ltd IPO Day 3 Subscription
Kross Limited IPO FAQs
1. What is the allotment date of the Kross Limited IPO?
The allotment date of Kross Limited IPO is September 12, 2024.
2. What is the price band of the Kross Limited IPO?
The price band of the Kross Limited IPO is INR 228-240 per share.
3. What is the size of the Kross Limited IPO?
Kross Limited plans to launch an Initial Public Offering (IPO) valued at INR 500 crores. This comprises a new share issuance of INR 250 crores and the sale of 250 crores of existing equity shares. The funds generated will be utilized for machinery and equipment, repay loans, manage working capital, and address general corporate needs.
4. What is the listing date of the Kross Limited IPO?
The listing date of the Kross Limited IPO is September 16, 2024.
