The Jamshedpur-based Auto parts manufacturer Kross Ltd’s IPO, which opened on Monday, was subscribed 0.88 times, mainly due to retail interest. While QIBs did not show interest on Day 1 of the issue opening on Monday, the retail portion was subscribed 1.50 times. The HNIs (non-institution) portion received bids 0.6 times so far.
The IPO comes at a price band of ₹228-240 per share. The ₹500-crore IPO combines a fresh issue of equity shares worth ₹250 crore and an Offer for Sale (OFS) aggregating up to ₹250 crore by the promoters. The IPO closes on September 11. Bids can be made for a minimum of 62 equity shares and in multiples of 62 equity shares thereafter.
The Offer for Sale comprises equity shares aggregating up to ₹168 crore by Sudhir Rai and shares aggregating up to ₹82 crore by Anita Rai, who are the Promoter Selling Shareholders.
Half of the public issue will be reserved for qualified institutional buyers, 15 per cent for non-institutional investors, and the remainder, 35 per cent, for retail investors.
Ahead of the IPO, Kross has raised around ₹150 crore from 19 anchor investors (including 13 mutual funds) by allotting 62.49 lakh equity shares at ₹240 per equity share (the upper end of the price band). Anchor investors include EastSpring Investments, Mathews Asia Funds, LIC MF, ICICI Prudential, Axis MF, Kotak Mahindra Trustee, Alps/ Kotak, Invesco India, Motilal Oswal, Optimix, Natixis, Edelweiss, Max Life Insurance, and BOI MF.
The company proposes to utilise net proceeds from the fresh issue towards the funding of capital expenditure requirements towards the purchase of machinery and equipment estimated to be ₹70 crore, repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed from banks and financial institutions estimated to be ₹90 crore; funding working capital requirements estimated to be ₹30 crore; and balance amount towards general corporate purposes.
Kross, founded in 1991, is a manufacturer and supplier of trailer axle and suspension assemblies and an array of forged and precision machined safety-critical parts for heavy and medium commercial vehicles and farm equipment.
Equirus Capital is the sole book-running lead manager for the issue. The equity shares are proposed to be listed on the BSE and the NSE.
