Kross Sets Price Band For Rs 500-Crore IPO Opening Next Week

Kross Ltd. has set a price band of Rs 228 to Rs 240 per share for its initial public offering that will open on Sept. 9 and close on Sept. 11. The company seeks to raise Rs 500 crore from the primary market. The anchor book issue will be open for subscription on Sept. 6.

The Jharkhand-based company's initial share-sale is a combination of fresh issue of equity shares worth Rs 250 crore and an offer for sale of equity shares worth another Rs 250 crore, according to the draft IPO papers filed with the Securities and Exchange Board of India.

Promoters Sudhir Rai and Anita Rai will offload shares worth Rs 168 crore and Rs 82 crore, respectively, through the OFS route.

Of the IPO proceeds, Rs 70 crore will be used for the purchase of machinery and equipment and Rs 30 crore for working capital requirement. Further, Rs 90 crore will be used for repaying debt, while the remaining funds will be kept for general corporate purposes.

Equirus Capital will be the merchant bankers for the issue. The equity shares are proposed to be listed on the BSE and the NSE.

The forged and machined components maker may also consider fundraising of Rs 50 crore through pre-IPO placement. If the pre-IPO placement is undertaken, then the fresh issue size will be reduce to the extent of Rs 50 crore.

The company caters to medium and heavy commercial vehicles farm equipment segments and has a long standing relationships with several leading original equipment manufacturers that include Ashok Leyland Ltd. and Tata International Vehicle Applications Pvt.

The Rai-family backed company's revenue had jumped 45% year-on-year to Rs 44.88 crore in fiscal 2024. The revenue from operations rose by 26.9% year-on-year, reaching Rs 620.25 crore.

Meanwhile, earnings before interest, tax, depreciation, and amortisation saw an increase of 40% to Rs 80.77 crore, with the Ebitda margin expanding to 13% for the year.