The company is specializing in the manufacturing and supply of trailer axles, suspension assemblies, and a broad range of forged and precision-machined, high-performance safety-critical components for medium and heavy commercial vehicles, as well as farm equipment. Kross Limited IPO is set to raise Rs. 500 cr.
IPO opens
September 9, 2024
IPO Closes
September 11, 2024
IPO Size (Rs.)
₹500.00 Cr
Breakup
Fresh issue ₹250 Cr + OFS ₹250 Cr
Face Value:
₹ 5
IPO Price in Rs :
₹228 to ₹240 per share
Minimum Lot
62 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
About Kross Limited :
It supplies products to a diverse client base, including major original equipment manufacturers (OEMs), tier-one suppliers to OEMs, as well as domestic dealers and fabricators in the trailer axle and suspension business.
operates from 5 manufacturing facilities located in Jamshedpur, Jharkhand.
The company is a diversified player specializing in the manufacturing and supply of trailer axles, suspension assemblies, and a broad range of forged and precision-machined, high-performance safety-critical components for medium and heavy commercial vehicles, as well as farm equipment.
It also specializes in the production of safety-critical components, including axle shafts, companion flanges, anti-roll bars, stabilizer bar assemblies, suspension linkages, differential spiders, bevel gears, planet carriers, inter-axle kits, rear-end spindles, pole wheels, and a wide range of tractor components for hydraulic lift systems, power take-off shafts, and front axle spindles.
Sudhir Rai and Anita Rai are the promoters of the company.
Financials : Kross Limited IPO
Revenue from Operations
620.25
488.63
297.46
Revenue Growth (%)
26.94%
64.27%
–
EBITDA as stated
80.76
57.52
29.55
EBITDA Margin (%)
13.02%
11.77%
9.93%
Net Profit
44.88
30.93
12.17
Net Profit (%)
7.22%
6.32%
4.09%
Share Capital
27.05
13.52
13.52
Reserves
119.76
88.58
58.88
Net Worth
146.81
102.11
72.4
Total Borrowings
117.9
88.26
86.06
Post issue Share Capital
32.255
FV
5.0
IPO price
240.0
EPS Fy234
7.0
PE
34.5
Market cap in Lacs
1,548
Market cap / Sales
2.50
Anchor: Kross Limited IPO
Salient Points: Kross Limited IPO
From Rs. 250 cr net proceeds from Fresh Issue f
capex Rs. 70 cr
working capital Rs. 30 cr
debt repayment Rs. 90 cr
It plans to invest Rs. 70 cr for capacity addition and backward integration
Net debt will drop to Rs. 17 cr post the IPO.
KROSS limited manufactures parts for Tafe (Massey Ferguson) , Sonalika and Eicher tractors.
FY24 revenue grew 27% YoY and stood at Rs. 620 cr,; EBITDA of Rs. 82 cr (13% EBITDA margin) and net profit of Rs. 45 cr (7% net profit margin)
P/E ratio stands at ~ 34x.
Nearest Peers are GNA Axles (PE 19.6) and Automotive Axles (PE18.5 )
I have a neutral view on Kross Limited IPO. It is relatively priced aggressively and prevailing market sentiment may not be very conducive.
GMP as reported on social media has been Rs. 39 (17%)
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
