Kross IPO GMP Update: Key Signals to Watch Ahead of the Share Debut

Kross Limited is set to make its debut on the stock market following a successful initial public offering (IPO) that opened for subscription from September 9 to September 11, 2024. The company, known for its manufacturing of trailer axles and suspension assemblies, has attracted significant attention from investors. This article delves into the details surrounding the Kross IPO, including its date, price, market analysis, and more.

What is Kross IPO?

Kross Limited, established in 1991, specializes in producing high-performance forged and precision machined components for medium and heavy commercial vehicles (M&HCV) and agricultural equipment. The company has built a robust reputation in the automotive sector, supplying to major original equipment manufacturers (OEMs) like Ashok Leyland and Tata International DLT. The IPO aims to raise ₹500 crore, with a fresh issue of ₹250 crore and an offer for sale (OFS) of up to ₹250 crore.

Kross IPO Date Announcement

The Kross IPO opened for bidding on September 9, 2024, and closed on September 11, 2024. The shares are expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on September 16, 2024. Investors can check their allotment status shortly after the listing date.

How to Invest in Kross IPO

Investing in the Kross IPO is straightforward. Interested investors need to follow these steps:

1. Log in to your trading account on platforms like 5paisa or Angel One.
2. Select the Kross IPO from the current IPO section.
3. Enter the number of lots (62 shares per lot) you wish to apply for and the price.
4. Submit your UPI ID and confirm the mandate request to block the funds.

This process ensures that your bid is placed with the exchange, and you will receive notifications regarding the allotment status.

Kross IPO Share Price Prediction

The price band for the Kross IPO is set between ₹228 and ₹240 per share. The grey market premium (GMP) for Kross shares has shown stability, hovering around ₹50, indicating a potential listing gain of approximately 21%. This suggests that investors might see a positive return on their investment upon listing.

Kross IPO Company Background

Kross Limited has a strong foothold in the auto ancillary sector, focusing on quality and innovation. The company operates five manufacturing facilities in Jamshedpur, Jharkhand, and has established long-term relationships with key clients. Its diversified product portfolio allows it to cater to various segments, reducing long-term risks.

Kross IPO Market Analysis

The market response to the Kross IPO has been promising. The issue was subscribed 16.81 times overall, with qualified institutional buyers (QIBs) subscribing 23.32 times and non-institutional investors 22.24 times. Retail investors showed moderate interest, with a subscription of 10.75 times. This strong demand reflects confidence in Kross’s business model and growth prospects.

Kross IPO Financial Performance

Kross has demonstrated impressive financial growth. For the fiscal year ending March 2024, the company reported a 27% increase in revenue from operations, reaching ₹620 crore, while net profit surged by 45% to ₹44.8 crore. Over the past three years, Kross has achieved a compound annual growth rate (CAGR) of 44.4% in revenue, 65.5% in EBITDA, and 91.8% in profit after tax (PAT). Such robust performance highlights the company’s operational excellence and market position.

Kross IPO Risk Factors

Despite its strengths, Kross faces certain risks. A significant portion of its revenue (over 68%) comes from its top five customers. Any loss of a major client could adversely impact the business. Additionally, all manufacturing facilities are located in Jamshedpur, making the company vulnerable to regional disruptions. The absence of long-term contracts with customers could also pose a risk to revenue stability.

Kross IPO Subscription Process

The subscription process for the Kross IPO is conducted through the ASBA (Application Supported by Blocked Amount) method. Investors must ensure they have sufficient funds in their bank accounts to cover the application amount. The allotment of shares will be done on a lottery basis, and investors will receive notifications regarding their allotment status.

Kross IPO Allotment Status Check

Investors can easily check their allotment status through the BSE website or the registrar’s portal, KFin Technologies. To check the status, investors need to enter their application number or PAN details.

Kross IPO GMP Today

As of the latest updates, the grey market premium for Kross shares stands at ₹50, suggesting a positive outlook for the stock upon listing. This stability in GMP indicates investor confidence in Kross’s potential for growth and profitability.

Kross IPO Listing Gains Expectations

With the positive market response and stable GMP, expectations for listing gains are high. Investors are hopeful for a strong debut on September 16, 2024, as Kross Limited enters the public market.

Kross IPO Lot Size Details

The minimum investment in the Kross IPO is one lot, which consists of 62 shares. Investors can apply for a maximum of 13 lots, totaling 806 shares. This structure allows both retail and institutional investors to participate in the offering.

IPO DRHP Analysis

The Draft Red Herring Prospectus (DRHP) provides detailed insights into Kross’s business model, financial health, and growth strategy. Analysts have noted the company’s strong market position and operational capabilities, making it an attractive investment opportunity.

Kross IPO Promoter Background

The promoters of Kross Limited, Sudhir Rai and Anita Rai, have extensive experience in the automotive industry. Their leadership has been pivotal in establishing Kross as a trusted name in the manufacturing of trailer axles and suspension systems.

Kross IPO Industry Outlook

The automotive industry in India is poised for growth, driven by increasing demand for commercial vehicles and agricultural equipment. Kross’s focus on quality and innovation positions it well to capitalize on these trends.

Kross IPO Peer Comparison

In comparison to its peers, Kross Limited stands out due to its diversified product offerings and strong client relationships. Analysts believe that Kross’s operational efficiency and market presence will enable it to outperform competitors in the long run.

IPO Valuation Metrics

Kross’s valuation metrics indicate a favorable outlook for investors. The company’s robust financial performance and growth trajectory suggest that it is well-positioned for future success.

Kross IPO Growth Prospects

With a solid foundation and a commitment to innovation, Kross Limited is expected to continue its growth trajectory. The IPO proceeds will be utilized to repay debt and fund expansion plans, further enhancing its market position.

Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.