Kross Ltd's IPO Sees 88% Subscription on Day One

Kross Ltd's initial public offer received 88% subscription on the first day. The IPO includes a fresh issue worth Rs 250 crore and an Offer for Sale of Rs 250 crore. Proceeds will be used for machinery, debt repayment, and working capital. The IPO concludes on September 11.

The initial public offer of auto parts manufacturer Kross Ltd received a significant 88 per cent subscription on the first day of bidding, Monday.

Data from the National Stock Exchange (NSE) indicated that the initial share sale saw bids for 1,34,95,044 shares against an offering of 1,53,50,877 shares. Retail Individual Investors (RIIs) showed strong interest with a 1.50 times subscription rate, while non-institutional investors subscribed to 61 per cent of their allotted shares.

Kross Ltd announced that it had already secured Rs 150 crore from anchor investors ahead of the broader share sale. The Jamshedpur-based company's IPO includes a fresh issue of equity shares worth Rs 250 crore and an Offer for Sale (OFS) aggregating up to another Rs 250 crore by the promoters, Sudhir Rai and Anita Rai. The price band is set at Rs 228-240 per share, with the subscription period ending on September 11.

Proceeds from the fresh issue are earmarked for purchasing machinery and equipment, settling debts, and providing for the company's working capital needs, along with general corporate purposes. Equirus Capital is acting as the sole book-running lead manager for the issue, and the shares are expected to be listed on both BSE and NSE. Founded in 1991, Kross Ltd is known for its diverse manufacturing range including trailer axles, suspension assemblies, and high-performance safety-critical parts.

(With inputs from agencies.)