Kross Limited is coming up with an IPO worth INR 500 crores. The offer consists of a fresh issue of shares worth INR 250 crores and an offer to sell 250 crores of existing equity shares. 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 Details
| Kross Limited IPO Date | NA |
| Kross Limited IPO Listing Date | NA |
| Kross Limited IPO Price | NA |
| Kross Limited IPO Lot Size | NA |
| Kross Limited IPO Total Issue Size | INR 500 crores |
| Kross Limited IPO Basis of Allotment | NA |
| Kross Limited IPO Initiation of Refunds | NA |
| Kross Limited IPO Credit of Shares to Demat | NA |
| Kross Limited IPO Issue Type | Book Built Issue IPO |
| Kross Limited IPO Listing At | BSE, NSE |
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 displays positive financial indicators, including strong revenue growth, improved profitability, and rising RoNW. The increasing EPS and NAV per Equity Share further enhance the company’s financial profile.
Revenue Growth:
Kross demonstrates consistent revenue growth, rising from ₹1,837.69 million in 2021 to ₹4,886.28 million in 2023, reflecting positive sales momentum.
Profitability:
Profit and Loss After Tax increase significantly from ₹47.67 million in 2021 to ₹309.31 million in 2023, indicating improved profitability.
Return on Net Worth (RoNW):
RoNW shows positive progression, increasing from 7.96% in 2021 to 30.29% in 2023, showcasing enhanced returns on equity.
Net Asset Value (NAV) and Equity:
NAV per Equity Share rises from ₹11.08 in 2021 to ₹18.88 in 2023, indicating an upward trajectory. Equity expands from ₹599.09 million in 2021 to ₹1,021.06 million in 2023.
Earnings per Share (EPS):
Diluted EPS witnesses significant improvement, moving from ₹0.88 in 2021 to ₹5.72 in 2023, signaling increased earnings available to each share.
Financial Stability:
Total Assets and Liabilities grow steadily, reflecting the company’s expanding scale. The Inventory Turnover Ratio improves from 4.27 in 2021 to 7.86 in 2023, indicating efficient inventory management.
Kross IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 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 million) | 1,740.67 | 1,971.98 | 2,494.59 |
| Total Liabilities (in million) | 1,141.58 | 1,247.94 | 1,473.53 |
| Inventory turnover ratio | 4.27 | 7.19 | 7.86 |
Kross Ltd Peer Comparison
Kross Limited stands out with robust revenue of ₹4,886.28 million, a P/E ratio not available, and a notable RoNW of 30.29%. Comparatively, Kross showcases competitive financial performance among peers, reflecting potential investment appeal in the automotive components industry.
| 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
Kross Limited intends 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 our 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 plan 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 million) |
| Sudhir Rai | 1,680 |
| Anita Rai | 820 |
Kross Limited IPO Offer Size
Kross Limited plans to launch an Initial Public Offering (IPO) valued at 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.
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 [M1] 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.
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 their 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, it’s recommended to contact Alice Blue’s customer support 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.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). 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.
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
Kross Limited IPO FAQs
What is the allotment date of the Kross Limited IPO?
The allotment date of Kross Limited IPO has not yet been announced.
What is the price band of the Kross Limited IPO?
The price band of the of Kross Limited IPO has not yet been announced.
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.
What is the listing date of the Kross Limited IPO?
The listing date of Kross Limited IPO has not yet been announced.
