Kross IPO Day 2: GMP holds at 20%; should you park your money here?

Kross IPO subscription status: Retail Individual Investors have placed the highest bid of 2.16 times, followed by Non-Institutional Investors at 1.01 times

Kross IPO Day 2: The public issue of Kross continues to receive strong demand from investors for the second day since its opening. NSE data reveals that the Kross IPO has received bids for 1,99,44,594 shares against 1,53,50,877 shares offered, thus getting subscribed 1.30 times, till around 11.06 am on Tuesday. Retail Individual Investors (RIIs) placed the highest bid of 2.16 times, followed by Non-Institutional Investors (NIIs) at 1.01 times. However, the issue has not received any participation from Qualified Institutional Buyers (QIBs).

Kross received broadly positive reviews from noted brokerages, including SBI Securities, Deven Choksey Research, and BP Wealth Management, for its IPO. READ MORE

Adding to the buzz, the unlisted shares of Kross are commanding a grey market premium of GMP of Rs 48 or 20 per cent at the upper end of the issue price. 

The Kross IPO comprises a fresh issue of 1.04 crore shares, and an offer for sale of 1.04 crore shares with a face value of Rs 5 each. The public issue is available at a price band of Rs 228-240 and a lot size of 62 for investors. Thus, investors can bid for a minimum of 62 shares and in multiples thereof. The minimum amount required by a retail investor to bid for the Kross IPO is Rs 14,880.

Kfin Technologies is the registrar for the issue, while Equirus Capital is the book-running lead manager.

The three-day subscription window to bid for the Kross IPO concluded on Wednesday, September 11, 2024. Following the closure of the subscription window, the allotment of Kross IPO shares is expected to be finaliSed on Thursday, September 12, 2024, and subsequently, the company's shares will be credited into demat accounts on Friday, September 13, 2024.

Kross shares are expected to list on the BSE, and NSE tentatively on Monday, September 16, 2024.

The company will use the net proceeds of the fresh issue for funding capital expenditure requirements towards the purchase of machinery and equipment, as well as for the repayment or prepayment, in full or in part, of certain outstanding borrowings from banks and financial institutions. Kross will use the remaining amount for funding working capital requirements and for general corporate purposes.

About Kross Limited

Kross Limited, formerly known as Kross Manufacturers (India) Private Limited, established in 1991, manufactures and supplies trailer axles and suspensions and a wide range of high-performance forged and precision-machined safety-critical parts for medium and heavy-duty commercial vehicles (M&HCV) and agricultural equipment.