Kross Ltd, renowned for its expertise in forging components, has recently made a significant move in the financial markets. The company has filed preliminary papers with SEBI for an Initial Public Offering (IPO) aimed at raising Rs 500 crore. This strategic step marks a new chapter in the company’s journey, opening doors to broader market opportunities and financial growth.
The IPO structure is twofold: a fresh issue of shares worth Rs 250 crore and an Offer for Sale (OFS) by promoters Sudhir Rai and Anita Rai, also amounting to Rs 250 crore. This dual approach balances new equity issuance with the realization of value for the existing shareholders.
Utilization of Funds and Company Strategy
Kross Ltd plans to allocate the net proceeds from the fresh issue towards several key areas. These include the acquisition of new machinery and equipment, repayment of existing debt, and bolstering the company’s working capital. A portion of the funds is also earmarked for general corporate purposes. This financial influx is set to empower the company’s expansion plans and streamline operations.
A Glimpse into Kross Ltd’s Corporate Journey
Founded in 1991, Kross has established itself as a diversified player in the industry. The company specializes in manufacturing and supplying trailer axle and suspension assemblies, along with a range of forged and precision machined parts. These components are critical for medium and heavy commercial vehicles and farm equipment segments.
Kross’s clientele includes heavyweights like Ashok Leyland and Tata International DLT Pvt Ltd. As of FY23, the company reported impressive financials with a revenue of Rs 489 crore and a Profit After Tax (PAT) of Rs 31 crore, underscoring its robust business model and operational efficiency.
IPO Management and Listing Plans
Equirus Capital is spearheading the IPO as the book running lead manager. In terms of the equity shares, Kross plans to list them on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), ensuring a wide investor base and enhanced visibility in the market.
Conclusion
Kross Ltd’s decision to go public with a Rs 500 crore IPO is a testament to its growth trajectory and future ambitions. This move not only signifies a new phase of growth for the company but also offers investors a chance to be part of Kross’s promising journey. As the market anticipates this IPO, Kross Ltd stands at the cusp of a significant transformation, poised for greater heights in the industry.