kross ipo anchor round: Kross raises Rs 150 crore from anchor investors ahead of IPO

Kross Ltd has raised around Rs 150 crore from 19 anchor investors ahead of its IPO. The company has allotted 62.49 lakh shares at Rs 240 apiece, which is the upper end of the price band.

Marquee anchor investors who participated in the round include EastSpring Investments, Matthews Asia Funds, LIC MF, ICICI Prudential, Axis MF, Kotak Mahindra Trustee, Alps/ Kotak, Invesco India, Motilal Oswal among others.

The Rs 500 crore IPO of the Jamshedpur-based company comprises a fresh equity sale of up to Rs 250 crore and an offer for sale (OFS) of up to Rs 250 crore by the promoter-selling shareholders. Under the OFS, Sudhir Rai and Anita Rai will offload part stakes in the company.

The company has fixed a price band of Rs 228-240 per share, where investors can bid for 62 shares in one lot.

The company proposes to utilise the net proceeds towards funding capital expenditure requirements for the purchase of machinery and equipment, repayment of debt, meeting working capital requirements and other general corporate purposes.Kross is a prominent manufacturer of a wide range of forged and machined components in India, with a growing export presence globally.It manufactures a wide range of high-performance and safety critical components for the commercial vehicle and tractor segment and operates out of its five manufacturing facilities in Jamshedpur, Jharkhand, which are equipped with capabilities to design, develop and manufacture its diverse product portfolio.The company, which counts Ashok Leyland and Tata International DLT as its key clients, supplies its products to a diversified client base, including large original equipment manufacturers (OEMs) manufacturing M&HCV and tractors, tier-I suppliers to the OEMs in the M&HCV segment, domestic dealers and fabricators for its trailer axle and suspension business.

It has also attracted new customers such as Leax Falun AB, a Sweden-based company manufacturing propeller shafts for commercial vehicle OEMs, and a Japan-based OEM manufacturing commercial vehicles.

For the year ended March 2024, revenue from operations increased 27% year-on-year to Rs 620 crore, while net profit after tax increased 45% to Rs 44.8 crore.

Equirus Capital is the sole book-running lead manager to the offer.

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