Kross IPO subscribed 2.56x on Day 2; retail booked nearly 4x

Kross plans to use the net proceeds from the fresh issue for purchasing machinery and equipment, repaying debt, and funding the company’s working capital needs.

Kross Ltd IPO has got subscribed 2.56 times on the second day of bidding on September 10. The initial public offering of the auto parts manufacturer received bids for 3.92 crore shares against 1.53 crore shares on offer, according to NSE data.

The category for Retail Individual Investors (RIIs) received 3.87 times subscription while the portion for non-institutional investors got subscribed 2.87 times. Kross Ltd has mobilised Rs 150 crore from anchor investors. The issue, with a price band of Rs 228-240 per share, will conclude on September 11.

The Jamshedpur-based company’s initial public offering (IPO) includes a fresh issue of equity shares worth Rs 250 crore and an Offer for Sale (OFS) amounting to Rs 250 crore by the promoters. The OFS portion comprises equity shares worth up to Rs 168 crore by Sudhir Rai and Rs 82 crore by Anita Rai.

Kross plans to use the net proceeds from the fresh issue for purchasing machinery and equipment, repaying debt, and funding the company’s working capital needs. Additionally, a part of the funds will be allocated for general corporate purposes.

Established in 1991, Kross is a diversified company specialising in manufacturing and supplying trailer axles, suspension assemblies, and a wide range of forged and precision-machined high-performance safety-critical parts for medium and heavy commercial vehicles as well as the farm equipment sector.

Equirus Capital is the sole book-running lead manager for the issue. The equity shares are set to be listed on the BSE and NSE.

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