Kross Limited IPO (Kross IPO) Review –
Kross Limited IPO (Kross IPO) is set to open from 9th Sept Aug 2024 to 11th Sept 2024. This article will analyze the financials , strengths and weaknesses of the Kross Limited IPO (Kross IPO). Keep scrolling below to read more!
Kross Limited IPO (Kross IPO) Overview –
Established in 1991, company produces and distributes 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.
The company’s product portfolio includes axle shafts, companion flanges, anti-roll bars and stabilizer bar assembly, suspension linkages, differential spiders, bevel gears, planet carriers, inter-axle kits, rear-end spindles, pole wheels, and a variety of tractor components for the hydraulic lift arrangement, power take-off (PTO) shafts and front axle spindles.
The company supplies its products to major original equipment manufacturers (“OEMs”) that manufacture M&HCVs and tractors, as well as to domestic dealers and trailer axle and suspension manufacturers that supply OEMs in the M&HCV segment.
Kross Limited has five ISO 9001:2015 certified manufacturing facilities in Jamshedpur, Jharkhand, with the capacity to manufacture forgings weighing up to 40 kg.
The production facilities include (i) forging presses and upsetting lines with induction heating for billets, (ii) a foundry with a high-pressure moulding line, (iii) high precision machining machines like turning centers, vertical and horizontal milling centres, Grinding, broaching, hobbing and shaping machines as well as robot welding systems, (iv) an in-house cathodic electro dip painting system (“CED system”), powder coating and spray painting and (v) heat treatment furnaces and induction hardening systems.
As of June 30, 2024, the company had 528 permanent employees.
Kross Limited IPO (Kross IPO) Synopsis-
Kross Limited IPO (Kross IPO) is set to be open from 9th Sept 2024 to 11th Sept 2024, offering combination of fresh issue of 1.04 crore shares aggregating to Rs 250 crores and offer for sale of 1.04 crore shares aggregating to Rs 250 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Monday, September 16th 2024.
The total issue size of this IPO amounts to Rs. 500 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 9th Sept 2024 |
| Closing Date | 11th Sept 2024 |
| Lot Size | 62 Shares |
| Face Value | Rs 5 |
| IPO Size | Rs. 500 Cr |
| Fresh Issue | Rs. 250 Cr |
| IPO Price Range | Rs. 228 – 240 |
| Min. Investment | Rs. 14,880 |
| Offer for Sale (OFS) | Rs. 250 Cr |
| Employee Discount | N/A |
| Basis of Allotment | 12th Sept 2024 |
| Refunds | 13th Sept 2024 |
| Listing Date | 16th Sept 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Kross Limited IPO (Kross IPO) Market Lot
Kross Limited IPO (Kross IPO) minimum market lot is 62 shares with ₹14,880 application amount. The retail investors can apply up to 13 lots with 806 shares or ₹193,440 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 62 | ₹14,880 |
| Retail Maximum | 13 | 806 | ₹193,440 |
| S-HNI Minimum | 14 | 868 | ₹208,320 |
| B-HNI Minimum | 67 | 4,216 | ₹1,011,840 |
Kross Limited IPO (Kross IPO) Book Running Lead Managers –
- Equirus Capital Private Limited
Kross Limited IPO (Kross IPO) Registrar to the offer –
The registrar for the Kross Limited IPO (Kross IPO) is Kfin Technologies Limited . They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
- Funding of capital expenditure requirements of the Company towards the purchase of machinery and equipment;
- Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company, from banks and financial institutions;
- Funding working capital requirements of the Company; and
- General corporate purposes
Key Performance Indicator –
The market capitalization of Kross Limited is Rs 1548.23 Cr.
KPI as of March 31, 2024.
| Earning Per Share (EPS): Post IPO | ₹6.96 per Equity Share |
| Price/Earning P/E Ratio: Post IPO | 34.5 |
| Return on Net Worth (RoNW): | 30.57% |
| PAT Margin(%) | 7.22 |
| Net Asset Value (NAV): | ₹27.14 per Equity Share |
Financial Status –
The company’s revenue grew by 27% and PAT increased by 45% between FY 24 and 23.
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 March 2024.
The total assets of the company are Rs.352 crore.
The company’s total revenue is Rs.621.46 crore.
The company’s PAT is Rs.44.88 crore.
The net worth of the company is Rs.146.81 crore.
The company’s EBITDA is Rs.80.75 crore.
| Particulars(in Rs. Crores) | 31 MAR 24 | 31 MAR 23 | 31 MAR 22 |
|---|---|---|---|
| Revenue From Operations | 621.46 | 489.36 | 297.88 |
| PAT | 44.88 | 30.93 | 12.17 |
| Net Worth | 146.81 | 102.11 | 72.4 |
| Total Assets | 352 | 250.57 | 197.82 |
| Reserves and Surplus | 119.76 | 88.26 | 86.06 |
Valuation of P/E Ratio :
The P/E Ratio of Kross Limited IPO (Kross IPO) is 28.91
Comparative Analysis with Listed Peers :
The average P/E Ratio of the industry is 24.85x.
The P/E ratio of Bajaj Housing Finance IPO (28.91x), as compared with the industry’s average P/E of 24.85x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Kross Limited IPO (Kross IPO) –
Kross Limited peer comparison with similar listed entities.
| Company Name | EPS | NAV (per share) (Rs) | P/E (x) | RoNW (%) | Financial statements |
|---|---|---|---|---|---|
| Kross Limited | 8.3 | 27.14 | 30.57 | Standalone | |
| Ramkrishna Forgings Ltd. | 20.27 | 148.48 | 46.55 | 12.72 | Consolidated |
| Jamna Auto Industries Ltd. | 5.15 | 22.64 | 24.3 | 22.74 | Consolidated |
| Automotive Axles Ltd. | 109.95 | 579.63 | 17.05 | 18.97 | Consolidated |
| G N A Axles Ltd | 23.28 | 186.69 | 17.32 | 12.47 | Consolidated |
| Talbros Automotive Components Ltd. | 17.82 | 87.02 | 19.03 | 20.47 | Consolidated |
Note: The above comparison of listed peers is as per data by 31 March 2024.
Kross Limited IPO (Kross IPO) Strengths –
Its trailer axle and suspension business has a long-standing relationship with large OEMs and their tier-one suppliers, as well as a diverse network of dealers.
The company is widely recognized as one of the leading manufacturers in India of trailer axles and suspension assemblies, and one of the few domestic players with the capacity to manufacture trailer axles and suspension assemblies in-house.
Its product portfolio is diversified, with a focus on continuous value addition.
The integrated manufacturing operations are paired with in-house product and process design capabilities that offer scale, flexibility, and comprehensive solutions.
A history of steady expansion and strong financial results during the last three FYs.
Kross Limited IPO (Kross IPO) Weakness –
The manufacture and sales of M&HCV and farm equipment by its clients immediately affect the demand for its goods. The general state of the economy or the industry, increasing industrial activity, agricultural output, the rate of infrastructure development, changing regulatory requirements, Government initiatives, and trade agreements can all have an impact on the production and sales of M&HCV and farm equipment.
The company’s sales are influenced by the inventory levels of manufacturers in these industries and are directly reliant on the output levels of OEMs in the M&HCV and farm equipment industries as well as tractor-trailer manufacturers.
It sells trailer axle and suspension assemblies for medium and heavy commercial vehicles (M&HCV), which contributes to a major of its income. Any decline in demand for its core products brought about by modifications to laws or advancements in technology, such as the use of more renewable or green energy, would be extremely detrimental to its business.
Since its manufacturing facilities are situated in the same area, any disruptions in the production process brought on by regional or local issues could harm the company.
A few of its products, specifically trailer axles, are offered with kilometer-based guarantees of 1,00,000 and 4,00,000 kilometers. For certain of these goods, the company is responsible for replacing specific parts or the entire unit during the warranty period. Customer unhappiness could negatively impact the business, sales, and operational outcomes if any of the products don’t meet applicable quality standards or break down during the warranty period.
In the last FYs, its financing and investing activities resulted in negative cash flows.
Kross Limited IPO (Kross IPO) Status
Kross Limited IPO (Kross IPO) allotment status will be available on Kfin Technologies Limited’s website.
Click on Link Kfin Technologies IPO weblink to get allotment status.
Kross Limited IPO (Kross IPO) GMP Today –
IPO’s last GMP is ₹0, last updated 8th Sept 2024. With the price band of 240.00, IPO’s estimated listing price is ₹240(cap price + today’s GMP). The expected percentage gain/loss per share is 0.00%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
