Kross Ltd IPO Subscription Details on Day 2

10 Sep 2024 , 01:00 PM

On the second day of bidding, the IPO for Kross Ltd, an auto parts manufacturer, has been fully subscribed, led by strong participation from retail investors, with non-institutional investors also showing significant interest.

As of 12:54 pm, the IPO was subscribed 1.68 times, according to data from the BSE. The retail investor segment was subscribed 2.72 times, while the non-institutional investors’ portion saw a subscription of 1.47 times. The quota for qualified institutional buyers (QIBs) has not yet been filled.

On the first day of bidding, which was Monday, the IPO achieved 88% subscription overall. Specifically, retail investors subscribed 1.50 times their allotted portion, and non-institutional investors subscribed 61% of their segment.

The IPO is open for subscription from September 9 to September 11. Prior to the public offering, Kross Ltd raised ₹150 Crore from anchor investors on Friday. The IPO price band is set between ₹228 and ₹240 per share.

The IPO allocation is structured with 50% reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs).

Kross Ltd specializes in manufacturing and supplying trailer axles, suspension assemblies, and a range of forged and precision-machined, high-performance, safety-critical components for medium and heavy commercial vehicles (M&HCV) and the farm equipment sector.

Their product lineup includes axle shafts, companion flanges, anti-roll bars, stabilizer bar assemblies, suspension linkages, differential spiders, bevel gears, planet carriers, inter-axle kits, rear-end spindles, pole wheels, and various tractor components for hydraulic lift systems, power take-off (PTO) shafts, and front axle spindles.

The company’s IPO comprises a fresh issue of equity shares worth ₹250 Crore and an offer-for-sale (OFS) totaling up to ₹250 Crore by the promoters.

Founders Sudhir Rai and Anita Rai are offering shares worth ₹168 Crore and ₹82 Crore respectively through the OFS.

The funds raised from the fresh issue will be used to repay debt, meet working capital requirements, and invest in machinery and equipment. A portion of the proceeds will also be allocated for general corporate purposes.

Equirus Capital Private Limited is the book-running lead manager for the IPO, and Kfin Technologies Limited is acting as the registrar.