Kross Ltd IPO Oversubscribed 16.81 Times, Gains Massive Investor Interest

The initial share sale of auto parts manufacturer Kross Ltd was subscribed 16.81 times on the last day. The company mobilised Rs 150 crore from anchor investors and aims to raise Rs 500 crore through equity shares and an Offer-for-Sale. The shares are set to list on BSE and NSE.

The initial public offering (IPO) of auto parts manufacturer Kross Ltd saw a tremendous response, being subscribed 16.81 times by the end of the subscription period on Wednesday.

According to data from the National Stock Exchange (NSE), the public offer received 25,80,21,618 bids against the 1,53,50,877 shares on offer.

The segment for Qualified Institutional Buyers (QIBs) was subscribed 23.32 times, while non-institutional investors subscribed 22.24 times. Retail Individual Investors (RIIs) showed strong interest with a 10.76 times subscription.

Kross Ltd mobilised Rs 150 crore from anchor investors before the official launch of the IPO. The Jamshedpur-based company aims to raise Rs 500 crore through a combination of a fresh issue of equity shares worth Rs 250 crore and an Offer-for-Sale (OFS) worth up to Rs 250 crore by the promoters. The OFS includes Rs 168 crore from Sudhir Rai and Rs 82 crore from Anita Rai.

The IPO is priced between Rs 228-240 per share. Kross intends to utilize the net proceeds for purchasing new machinery and equipment, paying off existing debts, and funding working capital requirements. A portion is also allocated for general corporate purposes.

Founded in 1991, Kross Ltd is known for manufacturing and supplying trailer axle and suspension assemblies, as well as various high-performance safety-critical parts for medium and heavy commercial vehicles and farm equipment. Equirus Capital is the sole book-running lead manager for the IPO. The equity shares will be listed on the BSE and NSE.

(With inputs from agencies.)