Shares of Kross Limited made a lacklustre start on its stock market debut on September 16 after listing at Rs 240, same as the issue price on the Bombay Stock Exchange (BSE).
The listing completely misses grey market estimates where shares were trading at a premium of 10 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
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The Rs 500-crore public offer, a combination of a fresh issue and an offer for sale, received decent investor interest after it was subscribed over 16 times in three days.
The quota for Retail Individual Investors (RIIs) garnered 10.53 times subscription while the category for non-institutional investors purchased just over 22 times their allotted quota. The Qualified Institutional Buyers (QIBs) mopped up 23.32 times the portion reserved for them. subscription. Earlier, it mobilised Rs 150 crore from anchor investors.
Read more: FOMC in focus next week as jumbo rate cut could boost market rally further
Kross plans to utilize the net proceeds from the fresh issue for purchasing machinery and equipment, repaying debt, and meeting working capital needs. A portion will also be set aside for general corporate purposes.
Also read: GST evasion doubles to Rs 2.01 lakh crore in FY24, this city tops the list
Founded in 1991, Kross is a diversified manufacturer specializing in trailer axles, suspension assemblies, and high-performance, safety-critical parts for medium and heavy commercial vehicles, as well as farm equipment.
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