Kross Ltd IPO Allotment and Listing: Everything You Need to Know
Kross Ltd, the Jamshedpur-based auto ancillary company, is all set to finalize its share allotment on Thursday, September 12, 2024. Investors who participated in the IPO bidding will soon receive notifications about the status of their allotments. Let’s dive into the details of Kross Ltd’s IPO, including subscription status, allotment process, grey market premium, and more.
Overview of Kross Ltd IPO
Kross Ltd’s IPO was open for bidding from September 9 to September 11, 2024, offering shares in a fixed price band of ₹228-240 per share with a lot size of 62 shares. The company aimed to raise ₹500 crore through this IPO, which included a fresh share sale worth ₹250 crore and an offer-for-sale (OFS) of up to 1.04 crore equity shares.
Key Dates and Allotment Process
- Bidding Period: September 9 to September 11, 2024
- Allotment Finalization Date: September 12, 2024
- Listing Date: Expected on September 16, 2024
- Price Band: ₹228-240 per share
- Lot Size: 62 shares per lot
Subscription Details
Kross Ltd’s IPO received a strong response from investors, being subscribed 16.81 times overall. Here’s a breakdown of the subscription:
- Qualified Institutional Buyers (QIBs): Subscribed 23.32 times
- Non-Institutional Investors (NIIs): Subscribed 22.24 times
- Retail Investors: Subscribed 10.75 times
How to Check Kross Ltd IPO Allotment Status
If you’ve applied for Kross Ltd’s IPO, you can check the allotment status through two primary portals: the BSE website and the KFin Technologies portal, the registrar for the issue.
Checking Allotment on BSE Website
- Visit BSE Allotment Status.
- Select ‘Equity’ under the issue type.
- Choose ‘Kross Ltd’ from the issue name dropdown.
- Enter your application number and PAN card details.
- Complete the CAPTCHA and click ‘Submit’.
Checking Allotment on KFin Technologies Portal
- Go to the KFin Technologies Allotment Portal.
- Select ‘Kross Ltd’ from the IPO dropdown.
- Choose one of the modes: Application Number, Demat Account, or PAN ID.
- Select the application type (ASBA or non-ASBA).
- Enter the required details and fill in the CAPTCHA.
- Click ‘Submit’ to view your allotment status.
Grey Market Premium (GMP) Insights
The Grey Market Premium (GMP) of Kross Ltd has remained stable at around ₹50 per share. This indicates a listing pop of approximately 21% over the IPO price, suggesting strong potential gains for investors. The GMP fluctuated between ₹0 to ₹50 during the IPO bidding period but has held steady, reflecting positive investor sentiment towards Kross Ltd.
Company Background and Financials
Established in 1991, Kross Ltd, formerly known as Kross Manufacturers (India), specializes in manufacturing and supplying trailer axles, suspensions, and high-performance safety-critical parts for medium and heavy-duty commercial vehicles (M&HCV) and agricultural equipment. The company has built a robust market position with long-term relationships with major domestic and global clients.
Key Financial Highlights
- Revenue Growth: Kross Ltd has shown consistent revenue growth over the past few fiscal years, driven by an improved product mix and increased internal production.
- EBITDA Margins: The company has reported significant improvement in EBITDA margins due to its backward integration strategies and enhanced product offerings.
- Valuation: At the upper price band of the IPO, Kross Ltd is seeking a Price to Earnings (P/E) ratio of 34 times for FY24, with a post-issue market capitalization of ₹1,548 crore.
Broker Recommendations: Apply or Skip?
Positive Outlook from Brokerages
Several brokerages have expressed positive sentiments about Kross Ltd’s IPO, suggesting that investors subscribe for the long term. They cite the company’s strong market position, established client relationships, and consistent financial performance as key reasons to invest.
- Anand Rathi Research: Recommends subscribing for the long term, highlighting the company’s robust business model and financial consistency despite cyclical challenges in the commercial vehicle industry.
- Canara Bank Securities: Advises investors to apply for the long term, noting the attractive growth potential, forward integration strategies, and plans for capacity expansion.
Neutral Rating by Swastika Investmart
Swastika Investmart offers a neutral rating on the IPO due to high valuation concerns and market challenges. They acknowledge Kross Ltd’s strong growth trajectory but caution investors about potential market risks.
Key Risks and Challenges
While Kross Ltd offers promising growth prospects, there are notable risks associated with the investment:
- Valuation Concerns: The IPO’s valuation is considered high, with a P/E ratio slightly above the industry average.
- Cyclicality of the Auto Industry: As Kross Ltd operates in the commercial vehicle sector, its performance is closely tied to the cyclical nature of the industry, which can impact financial stability.
- Customer Concentration: A significant portion of Kross Ltd’s revenue comes from a few key customers, which poses a risk if any of these clients reduce or halt their orders.
Final Verdict: Should You Invest in Kross Ltd IPO?
Kross Ltd’s IPO has garnered significant interest from investors, reflected in its oversubscription across all categories. With a stable GMP and positive outlook from leading brokerages, the IPO presents an attractive investment opportunity for those with a long-term perspective. However, potential investors should carefully consider the valuation and inherent risks before making a decision.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult certified experts before making any investment decisions.
