The Kross IPO is an exciting opportunity for investors. With the IPO opening on September 9, 2024, and closing on September 11, 2024, it offers a promising investment avenue. In this blog post, we will provide a detailed analysis of the Kross IPO, including its price band, allotment details, financials, and more. Our goal is to help you make an informed decision.
1. Kross IPO Overview
Kross Limited is a well-established company that was founded in 1994. It specializes in manufacturing high-performance safety components for tractors, trailers, and commercial vehicles. The company operates five manufacturing facilities in Jamshedpur, Jharkhand, equipped with advanced machinery and precision tools. Kross Limited serves a diverse client base, including large original equipment manufacturers (OEMs), domestic dealers, and fabricators.
The Kross IPO aims to raise approximately ₹500 crores. This amount includes a fresh issue of ₹250 crores and an offer for sale of ₹250 crores. The equity shares have a face value of ₹5 each.
2. Key Dates and Details
It’s essential to keep track of the critical dates related to the Kross IPO to ensure you don’t miss out on any opportunity. Below is a table that summarizes these key dates:
| Event | Date |
|---|---|
| IPO Open Date | September 9, 2024 |
| IPO Close Date | September 11, 2024 |
| Basis of Allotment | September 12, 2024 |
| Refunds | September 13, 2024 |
| Credit to Demat Account | September 13, 2024 |
| IPO Listing Date | September 16, 2024 |
The Kross IPO will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
3. Financial Performance of Kross Limited
The financial health of Kross Limited shows strong growth over the years. Here’s a snapshot of the company’s financial performance:
| Year | Revenue (₹ in Crores) | Profit After Tax (₹ in Crores) | Assets (₹ in Crores) |
|---|---|---|---|
| 2022 | 297.88 | 12.17 | 197.82 |
| 2023 | 489.36 | 30.93 | 250.57 |
| 2024 | 621.46 | 44.88 | 352.00 |
In 2024, Kross Limited reported a revenue of ₹621.46 crores, a significant increase from ₹489.36 crores in 2023. The profit after tax also rose to ₹44.88 crores in 2024, compared to ₹30.93 crores in 2023. This consistent growth highlights the company’s robust financial position, making the Kross IPO an attractive option for long-term investors.
4. Kross IPO Market Lot and Allotment
Understanding the market lot and allotment process is crucial for potential investors. Here’s a breakdown of the Kross IPO market lot details:
| Category | Minimum Lot Size | Maximum Lot Size | Shares | Amount |
|---|---|---|---|---|
| Retail | 1 lot | 13 lots | [.] shares | ₹[.] |
| S-HNI | 14 lots | – | [.] shares | ₹[.] |
| B-HNI | 68 lots | – | [.] shares | ₹[.] |
The allotment date is September 12, 2024, and the shares will be credited to your Demat account by September 13, 2024.
5. Kross IPO Price Band and Valuation
The Kross IPO price band is expected to be announced soon. Investors should stay updated as the price band will significantly impact the IPO’s overall valuation. Key financial metrics like Earnings Per Share (EPS), Return on Net Worth (RoNW), and Price/Earnings (P/E) ratio will play a critical role in assessing the IPO’s attractiveness.
| KPI | Value |
|---|---|
| ROE | 30.57% |
| ROCE | 28.15% |
| EBITDA Margin | 13.02% |
| PAT Margin | 7.22% |
| Debt to Equity Ratio | 0.80 |
| Earnings Per Share (EPS) | ₹8.30 (Basic) |
| Return on Net Worth (RoNW) | 30.57% |
| Net Asset Value (NAV) | ₹27.14 |
These metrics show that Kross Limited is financially healthy, with strong profitability and efficient use of its capital.
6. Objects of the Issue
The funds raised through the Kross IPO will be utilized for the following purposes:
- Capital Expenditure: The company plans to purchase new machinery and equipment to enhance its production capacity.
- Repayment of Borrowings: A portion of the funds will be used to repay existing loans, reducing the company’s debt burden.
- Working Capital: Part of the proceeds will be allocated to meet the company’s working capital requirements.
- General Corporate Purposes: The remaining funds will be used for general corporate needs.
7. Peer Comparison
Analyzing Kross Limited in comparison with its peers provides additional insights into its market position.
| Company | EPS | PE Ratio | RoNW % | NAV | Income (₹ in Crores) |
|---|---|---|---|---|---|
| Ramkrishna Forgings Limited | 20.27 | 46.55 | 12.72 | 148.48 | 3954.88 |
| Jamna Auto Industries Limited | 5.15 | 24.30 | 22.74 | 22.64 | 2426.77 |
| Automotive Axles Limited | 109.95 | 17.05 | 18.97 | 579.63 | 2229.17 |
| GNA Axles Limited | 23.28 | 17.32 | 12.47 | 186.69 | 1506.26 |
| Talbros Automotive Components Limited | 17.82 | 19.03 | 20.47 | 87.02 | 778.27 |
Kross Limited shows competitive metrics, particularly in RoNW and NAV, which indicates its strong financial standing among peers.
8. How to Apply for Kross IPO
Applying for the Kross IPO can be done in a few simple steps:
- ASBA Online: You can apply through the ASBA (Application Supported by Blocked Amount) method using your bank account.
- UPI Method: Another option is applying online through UPI using your stockbroker’s platform.
- Offline: You can also apply by filling out the IPO application form through your stockbroker.
Remember to submit your application before the IPO closes on September 11, 2024.
9. Frequently Asked Questions (FAQs)
Q1: What is Kross IPO?
A: The Kross IPO is a main-board IPO aiming to raise ₹500 crores. The IPO will be listed on BSE and NSE.
Q2: When will the Kross IPO open for subscription?
A: The IPO will open on September 9, 2024, and close on September 11, 2024.
Q3: What is the Kross IPO price band?
A: The Kross IPO price band will be announced shortly.
Q4: What is the Kross IPO lot size?
A: The minimum lot size for retail investors is [.] shares.
Q5: When is the Kross IPO allotment date?
A: The allotment date is September 12, 2024.
Q6: What is the Kross IPO listing date?
A: The listing date is September 16, 2024, on BSE and NSE.
Q7: Should I invest in Kross IPO?
A: Based on the company’s financials and growth potential, Kross IPO could be a good investment for long-term investors.
