Kross Ltd IPO: Kross Limited, a specialist in manufacturing forging components for top Original Equipment Manufacturer (OEMs), have filed its preliminary draft papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹500 crore through an initial public offering (IPO).
The first published issue of the company consists of a fresh issue of shares worth ₹250 crore and an Offer for Sale (OFS) of shares aggregating up to ₹250 crore by promoters.
The OFS portion consists of equity shares of up to ₹168 crore by the company's chairman and managing director Sudhir Rai and ₹82 crore by director Anita Rai. The company may also reportedly undertake a pre-IPO placement of its securities worth up to ₹50 crore.
Here's what you need to know more about Kross IPO:
What is Kross Limited?
Founded in 1991, Kross is a Jamshedpur-based company which manufactures forging components for top Original Equipment Manufacturers or OEMs.
The company is a diversified player focused on manufacturing and supply of trailer axle and suspension assembly and a wide range of forged and precision machined high-performance safety critical parts for medium and heavy commercial vehicles and farm equipment segments.
Who are its clients?
Kross Limited counts Ashok Leyland and Tata International DLT Private Limited among its key clients.
How much is Kross' revenue?
{{/usCountry}}Kross Limited counts Ashok Leyland and Tata International DLT Private Limited among its key clients.
How much is Kross' revenue?
{{/usCountry}}As per the company's financial details of 2023-'24, Kross Limited's revenue from operations was ₹489 crore with a Profit After Tax (PAT) of ₹31 crore.
Why Kross wants to raise through IPO?
The Jamshedpur-based company proposes to utilise the net proceeds of the fresh issue for the purchase of machinery and equipment, payment of debt, and funding the working capital requirements of the company.
It also proposed to use a portion for its general corporate purposes.
(Inputs from PTI)