Kross IPO opens today: Know price band, GMP, other details; should you apply or not?

The shares of Kross IPO are currently trading at a premium of 50, as per market investors. This means that the estimated listing price of the Kross IPO is likely to be 290, which is 20.83 per cent higher than the IPO price of 240.

Vaamanaa Sethi
Updated9 Sep 2024, 08:27 AM IST
Kross IPO: The shares of Kross IPO is currently trading at a premium of  <span class='webrupee'>₹</span>50, as per market investors.
Kross IPO: The shares of Kross IPO is currently trading at a premium of ₹50, as per market investors.

The IPO of Kross Limited, which is trailer axle and suspension assembly manufacturing company, will be opening for subscription today, September 9. The IPO will remain open for bidding till September 11.

The company manufactures and supplies trailer axle and suspension assemblies and is a diversified player in the industry. Additionally, it provides a large selection of forged equipment for the farm equipment and medium- and heavy-duty commercial vehicle categories.

Also Read | Kross IPO to open for subscription on September 10; here are 10 things to know

Around 50 per cent of the issue is reserved for QIB investors, not less than 35 per cent for retail investors and around 15 per cent for non-institutional investors (NII).

The company has had strong financial results recently; in the fiscal year 2024, net profit increased by 45.1% to 44.9 crore. In addition, revenue increased significantly by 27% to 620.3 crore from the previous year.

Kross IPO review

Brokerage firm SBI Securities, while giving ‘subscribe for long-term’ tag, says that the issue appears to be fairly valued given the healthy growth track record of the company. “We recommend subscribing to the issue for long term investment horizon,” the firm said in a note.

Meanwhile, Deven Choksey Research has assigned ‘subscribe’ rating to the Kross IPO, given the impressive growth metrics and competitive positioning, coupled with high return ratios compared to its peers.

Also Read | IPO Frenzy: 13 public issues, 8 listings to keep primary market busy next week

“With a strong track record of financial performance and a commitment to innovation, Kross Limited stands to benefit from the ongoing demand for high-quality, safety-critical components. The company is expected to trade at an adjusted PE multiple of 34x at the upper price band. Given the impressive growth metrics and competitive positioning, coupled with high return ratios compared to its peers, we assign a ‘SUBSCRIBE’ rating for Kross Limited’s IPO,” the brokerage firm said.

Kross IPO details

The Kross IPO is a book-built issue valued at 500 crore. It comprises a fresh issue of 1.04 crore shares, amounting to 250 crore, and an offer for sale of an additional 1.04 crore shares, also totaling 250 crore.

The price band of the upcoming IPO has been fixed at 228 to 240 per share, with a face value of 5 per share.

Also Read | Kross IPO: Autoparts maker raises nearly ₹150 crore in anchor round before IPO

The company plans to utilize the proceeds mainly for repaying loans and supporting future capital expenditures. Around 90 crore will be allocated for debt repayment, while 70 crore from the IPO will be used to finance capital investments, particularly for the purchase of machinery and equipment. Additionally, approximately 30 crore will be set aside for working capital requirements.

The allotment for the Kross IPO is expected to be completed on Thursday, September 12. The IPO is set to be listed on both the NSE and BSE, with a tentative listing date of Monday, September 16.

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

Kross IPO GMP

The shares of Kross IPO is currently trading at a premium of 50, as per market investors. This means that the estimated listing price of the Kross IPO is likely to be 290, which is 20.83 per cent higher than the IPO price of 240.

Also Read | Kross IPO: Price band set at ₹228-240 per share per share; check details here

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

 

 

 

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First Published:9 Sep 2024, 08:27 AM IST
Business NewsMarketsIPOKross IPO opens today: Know price band, GMP, other details; should you apply or not?

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