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The initial public offering (IPO) of Kross Ltd, a prominent auto parts manufacturer, commenced on Monday, September 9th, offering investors the opportunity to participate in the company's growth trajectory. The IPO, valued at Rs 500 crore, has set a price band of Rs 228 to Rs 240 per share for the public issue. On the first day of bidding, the IPO garnered a 0.69 times subscription, indicating a strong initial interest from investors. The non-institutional investor category received 0.37 times subscription, while the retail individual investors (RIIs) portion saw a promising 1.23 times subscription.
The IPO will remain open for public subscription until September 11th, allowing investors ample time to make their investment decisions. The share allotment for the Kross IPO is anticipated to be finalized on September 12th, with the shares expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on September 16th. Notably, the grey market premium (GMP) for Kross Ltd shares is currently trading at Rs 48 higher than the issue price. This significant GMP, representing a 20% potential listing gain, reflects positive market sentiment and investor optimism surrounding the IPO.
Kross Ltd's IPO has attracted the attention of several prominent brokerage firms, with most recommending a 'subscribe' rating. SBI Securities, in its IPO note, has assigned a 'subscribe for long-term' rating, citing the company's healthy growth track record and fair valuation. Deven Choksey Research has also issued a 'subscribe' rating, emphasizing Kross Ltd's strong financial performance, commitment to innovation, and competitive positioning within the auto parts industry. The IPO's success is further evident in the Rs 150 crore mobilized from anchor investors, including renowned names such as EastSpring Investments, Mathews Asia Funds, LIC Mutual Fund, and several others. These anchor investors have committed to purchasing 62.49 lakh equity shares at the upper end of the price band, underscoring their confidence in Kross Ltd's future prospects.
Kross Ltd, established in 1991, has carved a niche in the auto parts market through its diversified product portfolio. The company specializes in manufacturing and supplying trailer axle and suspension assemblies, along with a wide range of forged and precision-machined high-performance safety-critical parts. These products cater to the medium and heavy commercial vehicles and farm equipment segments, positioning Kross Ltd as a key player in the growing automotive industry. The IPO proceeds will be allocated towards strategic initiatives, including the purchase of machinery and equipment, debt repayment, working capital requirements, and general corporate purposes. Equirus Capital is serving as the sole book-running lead manager for the issue, while the company's equity shares are set to be listed on both the BSE and NSE, providing investors with a platform for trading their holdings.
Source: Kross IPO: Should You Apply? Check Subscription Status, GMP, Review