## Kross IPO Subscription Surpasses Expectations, Reaches 2.56 Times on Day 2
The initial public offering (IPO) of Kross Ltd, a prominent auto parts manufacturer, has garnered significant attention from investors, with subscription levels exceeding expectations on the second day of bidding. The issue, priced in the range of Rs 228-240 per share, is scheduled to conclude on September 11, showcasing strong investor interest in the company.
### Strong Demand and Subscription Details
On the second day of bidding, the IPO received bids for 3,92,75,140 shares, surpassing the 1,53,50,877 shares on offer, as reported by NSE data. The robust demand translated to a subscription level of 2.56 times, indicating a positive response from the investor community.
Among the different investor categories, Retail Individual Investors (RIIs) demonstrated strong interest, with a subscription rate of 3.87 times. Non-institutional investors also showed considerable demand, subscribing 2.87 times, while the Qualified Institutional Buyers (QIBs) segment achieved a subscription rate of 2 per cent.
### Utilization of Funds and Company Overview
Kross Ltd, based in Jamshedpur, has outlined its plans to utilize the net proceeds from the fresh issue for various purposes, including the purchase of machinery and equipment, debt repayment, and funding working capital requirements. Additionally, a portion of the funds will be allocated towards general corporate purposes, reflecting the company’s strategic priorities for growth and expansion.
Established in 1991, Kross is a diversified player in the manufacturing and supply of trailer axle and suspension assembly, as well as a wide range of forged and precision machined high-performance safety critical parts for medium and heavy commercial vehicles and farm equipment segments. The company’s focus on quality and innovation has positioned it as a key player in the industry, catering to the evolving needs of the market.
### Anchor Investor Support and Offer Structure
Prior to the IPO launch, Kross Ltd successfully secured Rs 150 crore from anchor investors, underlining the confidence in the company’s growth prospects and market positioning. The IPO comprises a combination of a fresh issue of equity shares worth Rs 250 crore and an Offer-for-Sale (OFS) aggregating up to Rs 250 crore by the promoters.
The OFS segment includes equity shares amounting to Rs 168 crore by Sudhir Rai and Rs 82 crore by Anita Rai, further enhancing the liquidity and market presence of the company. With a well-structured offer, Kross aims to leverage the capital raised to drive innovation, expand its product portfolio, and strengthen its market presence in the competitive auto parts segment.
### Listing and Book-Running Lead Manager
Equirus Capital has been appointed as the sole book-running lead manager to the IPO, overseeing the seamless execution of the offering and ensuring investor confidence in the process. The equity shares of Kross Ltd are proposed to be listed on both the BSE and NSE, providing investors with ample opportunities to participate in the company’s growth story and capitalize on its potential for value creation.
In conclusion, the strong subscription levels witnessed on the second day of bidding for Kross Ltd’s IPO underscore the investor confidence in the company’s growth trajectory and market positioning. With a well-defined utilization plan for the funds raised and a strategic focus on innovation and quality, Kross is poised to capitalize on emerging opportunities in the auto parts sector and deliver sustainable value to its stakeholders.
