Kross Ltd, a specialist in manufacturing forging components for leading OEMs, has submitted initial documents to the capital markets regulator Sebi for an Initial Public Offering (IPO) aiming to raise Rs 500 crore. The company’s inaugural public offering, based in Jamshedpur, includes a fresh issuance of shares valued at up to Rs 250 crore and an Offer for Sale (OFS) of shares amounting to Rs 250 crore by promoters, as outlined in the Draft Red Herring Prospectus (DRHP) filed on Thursday.
The OFS segment comprises equity shares of up to Rs 168 crore by Sudhir Rai and Rs 82 crore by Anita Rai. Additionally, there is a provision for a pre-IPO placement of securities worth up to Rs 50 crore. Should this placement occur, the size of the fresh issue will be adjusted accordingly. Kross intends to allocate the net proceeds from the fresh issue towards the acquisition of machinery and equipment, debt repayment, and meeting the company’s working capital requirements.
Moreover, a segment of the funds will be allocated for overall corporate needs. Established in 1991, Kross stands as a versatile entity with a concentration on the production and distribution of trailer axle and suspension assemblies. Additionally, it specializes in crafting an extensive array of forged and precision machined high-performance, safety-critical components for medium and heavy commercial vehicles, as well as farm equipment sectors. Key clients and suppliers for the company include Ashok Leyland and Tata International DLT Pvt Ltd.
In the fiscal year 2023, the company achieved a revenue of Rs 489 crore and a Profit After Tax (PAT) of Rs 31 crore. Equirus Capital serves as the book running lead manager for the issue, and the company plans to list its equity shares on both the BSE and the NSE.