Kross Ltd Files ₹500 Crore IPO with SEBI, Eyes Capital Market Expansion; Check Details

Jamshedpur-based Kross Ltd has taken a significant step towards accessing the capital markets by filing its preliminary draft papers with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) to raise ₹500 crore.

Also See: Upcoming IPO in India

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In accordance with the Draft Red Herring Prospectus (DRHP), Kross Ltd’s IPO will consist of a fresh issue of shares valued at up to ₹250 crore and an offer for sale (OFS) of shares amounting to ₹250 crore by the company’s promoters. The OFS component will include equity shares worth up to ₹168 crore by Sudhir Rai and ₹82 crore by Anita Rai. Additionally, the company has indicated the possibility of a pre-IPO placement of securities worth up to ₹50 crore, which would adjust the size of the fresh issue accordingly. Equirus Capital has been appointed as the book running lead manager for the IPO.

Also Read: Announced IPOs: Upcoming Big IPOs in India 2024

The equity shares issued through this IPO are intended to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Kross Ltd plans to utilize the net proceeds from the fresh issue for various purposes, including capital expenditure requirements amounting to ₹70 crore, repayment or prepayment of certain outstanding borrowings from banks and financial institutions, working capital needs worth ₹30 crore, and general corporate purposes.

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The key figures behind Kross Ltd, the promoters, are Sudhir Rai, Chairman and Managing Director; Anita Rai, Whole-Time Director; Sumeet Rai, Whole-Time Director; and Kunal Rai, Chief Financial Officer.

Kross Ltd serves a diverse clientele that includes Ashok Leyland and Tata International DLT Private Limited. The company specializes in supplying products to large original equipment manufacturers (OEMs) in the medium and heavy commercial vehicles (M&HCV) and tractor segments, tier one suppliers to M&HCV OEMs, domestic dealers, and fabricators in the trailer axle and suspension business. The company has also expanded its customer base by attracting new clients such as Leax Falun AB, a Sweden-based manufacturer of propeller shafts for commercial vehicle OEMs, and a Japanese OEM manufacturing commercial vehicles.

Also See: SEBI Approves IPO Plans for Jana SFB, India Shelter Finance Corp, DOMS, Onest, and Shiva Pharmachem

Established in 1994, Kross Ltd has consistently grown and diversified its operations. As of the fiscal year 2023, the company reported revenue from operations totaling ₹489 crore, with a profit after tax of ₹31 crore. Kross Ltd operates from five manufacturing facilities located in Jamshedpur, Jharkhand, where it has the capabilities to design, develop, and manufacture a diverse range of high-performance safety-critical parts for medium and heavy commercial vehicles and farm equipment segments.

Kross Limited IPO

Kross Ltd is renowned for its manufacturing of forging components for commercial vehicles, tractors, and trailer axles, as well as supplying trailer axle and suspension assemblies. The company was founded in 1994 and is headquartered in Gamharia, Jamshedpur, India. With its IPO plans, Kross Ltd aims to strengthen its financial position and continue its growth trajectory in the industry.

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