Kross Ltd files DRHP with SEBI to raise ₹500 crore via IPO; check details
Kross Ltd has 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 maiden public issue of the Jamshedpur-based company comprises a fresh issue of shares worth up to ₹250 crore and an offer for sale (OFS) of shares aggregating up to ₹250 crore by promoters, according to the Draft Red Herring Prospectus (DRHP).
The OFS portion consists of equity shares to the tune of up to ₹168 crore by Sudhir Rai and ₹82 crore by Anita Rai. The company may undertake a pre-IPO placement of its securities worth up to ₹50 crore.
If such placement is undertaken, the fresh issue size will be reduced. Equirus Capital is the book running lead manager to the issue. The equity shares are proposed to be listed on stock exchanges BSE and the NSE.
Kross Limited proposes to utilize the net proceeds of the fresh issue towards funding of capital expenditure requirements of the company towards purchase of machinery and equipment – for which it will use ₹70 crore. The company intends to utilise upto ₹90 crore for the repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed, from banks and financial institutions.
The company seeks to utlise ₹30 crore for funding working capital requirements of the company and funds will also be used for general corporate purposes. The promoters of the company are Sudhir Rai, Chairman and Managing Director; Anita Rai, Whole -Time Director; Sumeet Rai, Whole -Time Director and Kunal Rai, Chief Financial Officer.
Kross Ltd – which counts Ashok Leyland and Tata International DLT Private Limited as its key clients supplies its products to a diversified client base. This includes large original equipment manufacturers (OEMs) manufacturing M&HCV and tractors, tier one 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.
Kross Ltd 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.
As of FY23, the company’s revenue from operations was ₹489 crore with a profit after tax of ₹31 crore. It was established in 1991 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.
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Updated: 02 Dec 2023, 05:13 PM IST
