- Price band fixed at Rs 228 to Rs 240 per equity share of face value of ₹ 5 each
- Bid Offer will open on Monday, September 9, 2024 and close on Wednesday, September 11, 2024.
- Bids can be made for a minimum of 62 Equity Shares and in multiples of 62 Equity Shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, SEPT 6
Jamshedpur-based Kross Ltd, a diversified company specializing in the manufacturing and supply of trailer axles and suspension assemblies, on Friday said it has mobilised Rs 150 crore from anchor investors ahead of its Rs 500 crore initial public offering (IPO).
EastSpring Investments, Mathews Asia Funds, LIC Mutual Fund (MF), ICICI Prudential MF, Axis MF, Kotak Mahindra MF, Motilal Oswal MF, Edelweiss MF and Max Life Insurance Company are among the anchor investors.
According to a circular uploaded on BSE’s website, Kross Ltd has raised around Rs 150 crore from 19 funds, including mutual funds by allotting 6.2 mn equity shares at Rs 240 per equity share — the upper end of the price band.
The Jamshedpur-based company’s IPO is a combination of a fresh issue of equity shares worth Rs 250 crore and an Offer for Sale (OFS) aggregating up to Rs 250 crore by the promoters.
The OFS portion consists of equity shares to the tune of up to Rs 168 crore by Sudhir Rai and Rs 82 crore by Anita Rai.
The issue, with a price band of Rs 228-240 per share, will open for public subscription on September 9 and conclude on September 11.
Bids can be made for a minimum of 62 equity shares and in multiples of 62 equity shares thereafter.
The Company proposes to utilize net proceeds from the Fresh Issue towards (i) Funding of capital expenditure requirements towards purchase of machinery and equipment estimated to be ₹ 70 crore, (ii) Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed from banks and financial institutions estimated to be ₹ 90 crore; (iii) Funding working capital requirements estimated to be ₹ 30 crore; and balance amount towards General corporate purposes
Founded in 1991, Kross 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 and farm equipment segments.
“We plan to get into better technology in the axle extrusion, which is better than the current design. We plan to expand exports and have partners in Sweden and Japan,” Chief Financial Officer Kunal Rai said.
The company has added new customers to its order book, including Leax Falun AB, a Swedish manufacturer of propeller shafts for commercial vehicle OEMs, and a Japanese OEM that manufactures commercial vehicles for which it has developed 6 new component families which it plans to start exporting soon.
Currently, the company operates five manufacturing facilities in Jamshedpur, Jharkhand, and is a Tier 1 supplier to Ashok Leyland and Tata International, as well as medium and large OEMs of trailer axles and suspension equipment in Gujarat too.
Kross has shown strong performance in recent years. The top line profit for FY2024 increased by 27% to Rs 620.3 crore from Rs 489 crore in FY23. Additionally, the profit after tax increased to Rs 44.9 crore from Rs 31 crore in FY23.
The equity shares are proposed to be listed on the BSE and the NSE.
Equirus Capital is the sole book-running lead manager to the issue.
