KROSS IPO: The 500 crore IPO has received 88% of subscriptions against its offered size on Day. The manufacturer of auto parts, Kross Ltd has launched its public offer on September 9 for bidding and will continue till September 11. On the first day of opening, the IPO received massive demand from retail investors as the portion was fully subscribed. At the same time, a strong appetite was also seen among non-institutional investors.
KROSS IPO Subscription Status:
As per NSE data, cumulatively the IPO received bids of 1,34,95,044 equity shares on Day 1, which is 88% of the total offered size of 1,53,50,877 equity shares.
Among the investors, the retail individual investors (RII) category fully subscribed by 1.50x on September 9, against the reserved portion. At the same time, non-institutional investors (NII) subscribed 61% of the reserved portion. However, Qualified Institutional Buyers (QIBs) have shown dull demand.
KROSS IPO GMP:
As per Investor Grain data, Kross IPO's last GMP is ₹48, last updated Sep 9th 2024 11:30 PM. With a price band of 240.00, Kross IPO's estimated listing price is ₹288 (cap price + today's GMP). The expected percentage gain/loss per share is 20.00%.
KROSS IPO Details:
The IPO is a 100% book building and has a price band of Rs 228 per share to Rs 240 per share. The face value is Rs 5 per share.
The bid lot size is 62 Equity Shares and in multiples thereof. The maximum subscription amount allowed to retail investors is Rs 2 lakh. While the maximum bid quantity for QIBs is 1,53,50,828 equity shares in a multiple of 62 Equity Shares, while for NIIs, the maximum bid allowed is 1,09,64,886 equity shares in a multiple of 62 Equity Shares.
Equirus Capital is the book-running leading manager of the IPO, while KFin Technologies is the registrar of the issue.
KROSS IPO Allotment Date:
The IPO will close on September 11 and is likely to carry the basis of allotment on September 12, followed by the initiation of refunds and credit of shares to eligible investors on September 13.
KROSS IPO Listing Date:
The IPO is likely to be listed on September 16. Post the IPO, the company's proposed shares will be listed on BSE and NSE.
But before that, is it worth bidding for KROSS IPO?
Should You Subscribe KROSS IPO?
Ventura Securities On KROSS IPO:
The brokerage has recommended SUBSCRIBE on the IPO. It said, "Company is expanding their facilities and adding new production lines. This will help the company make new parts, like hydraulic covers for tractors, and set up in-house machining for hubs and brake drums. Co's diversified product portfolio helps us cater to the requirements of a broad spectrum of customers which includes marquee domestic and global OEMs for the M&HCV segment and their Tier 1 suppliers, domestic dealers and fabricators for our trailer axle and suspension business and in the last three fiscals, we have served over 200 customers."
SBI Securities On KROSS IPO:
On the valuation, this brokerage said, "At the upper price band of Rs 240, the company is valued at FY24 P/E multiple of 34.5x based on its post-issue capital. The issue appears to be fairly valued given the healthy growth track record of the company. Kross' Revenue/EBITDA/PAT has grown at a CAGR of 44.4%/65.5%/91.8% respectively over FY22-24. The IPO proceeds will be used by the management to repay debt and fund future growth which will boost earnings growth for the company. We recommend subscribing to the issue for long-term investment horizon."
Deven Choksey On KROSS IPO:
In its note, Deven Choksey said, "The company's diverse client base, including major OEMs and Tier-1 suppliers, contributes significantly to its revenue, with a strong focus on the M&HCV segment. 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."
Canara Bank Securities On KROSS IPO:
This brokerage said, "Despite a slightly higher P/E ratio of 28.92x compared to the industry average of 26x, Kross's strong future growth potential, capacity expansion plans, and forward integration strategies make this issue appear attractive," adding, "Therefore, we recommend to SUBSCRIBE this issue for long-term gains."
BP Wealth On KROSS IPO:
According to BP Wealth, the rising profitability highlights the company's ability to manage costs effectively. There was a noticeable hike in finance costs, but it didn't seem to have a significant impact on the profitability of the company. The issue is valued at a P/E of 28.9x on the upper price band based on FY24 earnings, which is deemed to be fair. Therefore, the brokerage recommended a SUBSCRIBE rating for the issue.
KROSS is a diversified player focused on manufacturing and supply of trailer axle and suspension assembly and a wide range of forged and precision machined high performance safety critical parts for medium and heavy commercial vehicles ("M&HCV") and farm equipment segments.
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