Fri Sep 13 03:47:14 UTC 2024: ## Kross IPO Over-Subscribed, Sets Stage for Listing
**New Delhi, September 12, 2024** – Kross, an automotive component manufacturer, has witnessed a successful initial public offering (IPO) with over 17 times subscription. The IPO, which aimed to raise Rs 500 crore, saw strong interest from both retail investors and institutional buyers.
The retail category received 11.26 times subscription, while qualified institutional buyers oversubscribed the IPO by 24.55 times. The price band for the issue was set at Rs 228 to Rs 240 per equity share.
The IPO consisted of fresh issues worth Rs 250 crore and an offer-for-sale (OFS) of Rs 250 crore by promoter and investor selling shareholders. The issue opened on September 9th and closed on September 11th. Allotment for the issue is scheduled for September 12th, with the company set to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on September 16th.
**Strong Listing Expectations**
Analysts are optimistic about the company’s performance post-listing. Sagar Shetty, Research Analyst at StoxBox, predicts a 20% listing gain, citing Kross’s diversified product portfolio and strong market position in the M&HCV and farm equipment segments.
“Kross is a diversified player with a strong focus on the manufacturing and supply of auto components,” said Shetty. “The upcoming technological advancements in axle beam extrusion and seamless tube manufacturing are set to provide a first-mover advantage, further strengthening Kross’s market position.”
Shetty also highlighted the company’s favorable position to capitalize on the “China +1” trend, which favors Indian OEMs. This, he believes, will further enhance the company’s geographical coverage.
**IPO Proceeds and Future Plans**
Kross plans to utilize the Rs 250 crore net proceeds from the fresh issue for the purchase of machinery and equipment, repayment of outstanding borrowings, and funding capital expenditure for equipment acquisition and general corporate purposes.
The company also anticipates benefits from the listing, including enhanced brand visibility and increased liquidity for shareholders.
**Strong Financials**
Kross has demonstrated strong financial performance in recent years. In FY 23-24, the company registered revenue of Rs 621 crore, a 27% increase from Rs 489 crore in FY 22-23. Profit after tax (PAT) also climbed to Rs 44.88 crore in FY 24, representing a 45% increase from Rs 30.93 crore in FY 23.
**Overall, the successful IPO and positive market sentiment surrounding Kross suggest a promising future for the company.** Investors are eagerly awaiting the listing and the potential for long-term growth.
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