Kross
Book Building issueMainboard₹500 Cr issue
0.00%
Listing gain over issue price
Issue size
₹500 Cr
1 lot at cut-off
₹14,880
Lot size
62shares
Open
09 Sep 2024
Close
11 Sep 2024
Allotment
12 Sep 2024
Listing
16 Sep 2024
Listing performance
Issue price
₹240
Listed at
₹240
Listing-day close
₹259.81
Latest price
₹306.55
Close on 23 Oct 2026
Listing gain
0.00%
Return since issue
+27.73%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Sep 2024 – 11 Sep 2024
- Listing date
- 16 Sep 2024
- Face value
- ₹5 per share
- Issue price
- ₹240 per share
- Lot size
- 62 shares
- Issue type
- Book Building issue
- Total issue size
- ₹500 Cr
- Market cap at offer price
- ₹1,548 Cr
- Promoter holding
- 100.00% → 67.70% pre-issue → post-issue
- ISIN
- INE0O6601022
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Equirus Capital Ltd.
- Registered office
- M-4, Phase VI, Gamharia, Adityapur Industrial Area, Jharkhand
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 62,49,999 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 62 shares per lot, in multiples, at ₹240
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 62 | ₹14,880 |
| Retail (max) | 13 | 806 | ₹1,93,440 |
| S-HNI (min) | 14 | 868 | ₹2,08,320 |
| S-HNI (max) | 67 | 4,154 | ₹9,96,960 |
| B-HNI (min) | 68 | 4,216 | ₹10,11,840 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
62,49,999
Anchor portion
₹150 Cr
at ₹240 per share
Valuation and performance
Valuation at offer price
₹240 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.30 | 6.96 |
| P/E (×) | 28.92 | 34.48 |
| Price to book (×) | 8.84 | — |
| Market cap | — | ₹1,548 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 30.57%
- ROCE
- 28.15%
- Debt / equity
- 0.80
- PAT margin
- 7.22%
- NAV per share
- ₹27.14
- Price to book
- 8.84
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kross
Kross Limited is an Indian manufacturer of forged and machined components and assemblies serving the commercial vehicle and tractor segments. The company operates backward integrated manufacturing facilities and forward integrated warehousing operations. Incorporated in 1991, it has evolved through multiple capital restructurings and currently generates revenue through the sale of specialized automotive components to original equipment manufacturers (OEMs) and tier 1 suppliers. For Fiscal 2024, the company reported revenue from operations of ₹6,202.50 million.
Company Analysis
from RHPKross Limited manufactures forged and machined components and assemblies for commercial vehicles and tractors.
Kross Limited is an Indian manufacturer of forged and machined components and assemblies serving the commercial vehicle and tractor segments. The company operates backward integrated manufacturing facilities and forward integrated warehousing operations. Incorporated in 1991, it has evolved through multiple capital restructurings and currently generates revenue through the sale of specialized automotive components to original equipment manufacturers (OEMs) and tier 1 suppliers. For Fiscal 2024, the company reported revenue from operations of ₹6,202.50 million.
Objects of the Issue
- Funding capex for purchase of equipment and machinery ₹700.00 million p.55
- General corporate purposes including working capital requirements ₹300.00 million p.55
- Funding of capital expenditure requirements towards purchase of machinery and equipment ₹700.00 million p.112
- Repayment or prepayment of outstanding borrowings from banks and financial institutions ₹900.00 million p.112
- Funding working capital requirements ₹300.00 million p.112
- General corporate purposes [●] p.112
- Not specified in this document part
- Capital expenditure and expansion of manufacturing capabilities ₹700.00 million p.315
Issue Structure
- Total Issue
- Up to ₹5,000.00 million
- Fresh Issue
- Up to ₹2,500.00 million
- Offer for Sale
- Up to ₹2,500.00 million by the Promoter Selling Shareholders
- Face Value
- ₹5 each
Business Model
The company manufactures and sells forged and machined components and assemblies to commercial vehicle and tractor OEMs and tier 1 suppliers. It earns revenue through the sale of goods and maintains customer relationships through long-term supply agreements with pre-negotiated pricing terms and delivery schedules.
Business Segments
Manufacture of trailer axles and suspension assemblies for commercial vehicles and tractors
Manufacturing of castings including brake drums, hubs, and hydraulic lift covers, along with in-house machining capabilities for these products
Manufacturing of axle shafts for commercial vehicles and tractors
Sale of manufactured components for commercial vehicles and tractors including trailer axles and other critical automotive components
Rendering of services related to manufacturing and components
Scrap sales, freight on sales and other operating activities
Manufacturing and supply of trailer axle and suspension assemblies and forged and precision machined high performance safety critical parts for medium and heavy commercial vehicles
Manufacturing and supply of forged and precision machined components for farm equipment sector
Other component manufacturing and related services
SWOT Analysis
Strengths
- • Prominent manufacturer of trailer axles and suspension assemblies in India(p.24)
- • Robust growth in trailer axle and suspension segment since 2019(p.24)
- • Revenue growth trajectory(p.26)
- • Profit growth and improving profitability margins(p.26)
- • Multiple manufacturing facilities with quality certifications(p.38)
- • Experienced promoters with 30+ years in auto component manufacturing(p.49)
- • Established competitive position in forged and machined components market(p.50)
- • Dedicated R&D capabilities supporting product development and process optimization(p.59)
- • Backward and forward integrated operations reducing costs and improving efficiency(p.53)
- • Long-standing relationships with large OEMs and tier one suppliers(p.133)
- • Recognized as prominent manufacturer of trailer axles and suspension assemblies with in-house manufacturing competency(p.133)
- • Diversified product portfolio with continuous value addition focus(p.133)
- • Integrated manufacturing operations with in-house design capabilities(p.133)
- • Strong track record of sustained growth and robust financial performance(p.133)
- • High return on equity and capital efficiency(p.136)
- • One of the few domestic manufacturers with in-house capability to design and produce trailer axles and suspension assemblies(p.200)
- • Rapid revenue growth of 100.55% CAGR in trailer axle and suspension business (FY22–FY24)(p.204)
- • Strong long-term relationships with marquee OEM customers including Ashok Leyland and Tata International, maintained for over 18 years(p.200)
- • Backward integrated manufacturing with in-house forging, casting, machining, and design capabilities offering scale and cost control(p.200)
- • Robust financial performance with PAT CAGR of 92.05% and EBITDA CAGR of 65.32% (FY22–FY24)(p.207)
- • Recognized as one of the fastest growing players in the organized trailer axle manufacturing industry(p.197)
- • Experienced management team with over three decades of automotive industry experience led by Chairman and Managing Director(p.201)
- • Established manufacturing capability with modern facilities and equipment(p.266)
- • Long operational history since incorporation with consistent business operations(p.240)
- • Experienced management team with domain expertise in automotive and manufacturing(p.240)
- • Growing revenue and profitability trajectory over the reporting period(p.263)
- • Strong independent board composition with qualified directors from reputed organizations(p.240)
- • Prominent position in trailer axle manufacturing(p.310)
- • Fastest growing player in organized trailer axle industry(p.310)
- • Robust growth trajectory since entering trailer axle business(p.310)
- • Long-standing OEM relationships spanning 18+ years(p.314)
- • Diversified product portfolio across M&HCV and farm segments(p.310)
- • Improving profitability metrics year-over-year(p.312)
Weaknesses
- • Extreme customer concentration risk(p.32)
- • Product concentration in trailer axles(p.22)
- • Heavy dependence on M&HCV segment(p.22)
- • Geographic concentration of all manufacturing facilities(p.35)
- • Lack of long-term customer contracts(p.39)
- • Heavy reliance on steel raw material with price volatility(p.41)
- • Top three suppliers account for significant portion of steel purchases(p.40)
- • High leverage and debt obligations(p.26)
- • Delayed payment of statutory dues in past(p.47)
- • No intellectual property protection for manufacturing processes(p.50)
- • Heavy dependence on short-term borrowings representing 80.76% of total borrowings(p.53)
- • Unregistered trademark exposing company to infringement and counterfeiting risks(p.50)
- • Excess workforce relative to factory license limits(p.57)
- • CSR expenditure shortfall in prior years(p.62)
- • Past corporate governance non-compliance issues(p.62)
- • All immovable properties are leased rather than owned(p.64)
- • Significant related party transactions creating potential conflicts of interest(p.51)
- • High debt-to-equity ratio relative to peers(p.138)
- • Significant outstanding borrowings requiring repayment(p.118)
- • Concentration of shareholding with promoters holding 99.99% pre-offer(p.108)
- • Limited export presence with only 1.14% revenue from outside India(p.137)
- • Lower revenue scale compared to major listed peers(p.138)
- • High customer concentration with top 5 customers representing 66.02% of FY24 revenue(p.203)
- • High reliance on specific customer (top 3 customers account for 49.75% of revenue)(p.203)
- • Limited export presence with exports contributing less than 1.50% of revenue in FY24, FY23, and FY22(p.209)
- • Lack of long-term firm commitment agreements with customers; reliance on purchase orders and spot orders(p.224)
- • Dependence on limited number of third-party suppliers for raw materials with no firm purchase agreements(p.223)
- • High manufacturing facility costs with units operating on leasehold land (ranging from 10 to 99 years)(p.220)
- • High financial leverage with significant borrowing obligations(p.281)
- • Concentration of shareholding among promoter family members(p.252)
- • Dependent on specific customer segments for revenue generation(p.266)
- • Trade receivables concentration with extended payment cycles(p.278)
- • High customer concentration risk (top 5 customers = 66% of revenue)(p.314)
- • Significant debt burden and leverage(p.329)
- • Dependence on few major customers for revenue(p.314)
- • Exposure to raw material cost fluctuations(p.331)
- • Debt covenant restrictions on operational flexibility(p.308)
- • Intellectual property vulnerability - unregistered trademark(p.347)
Opportunities
- • Fast-growing tractor trailer segment with 71% CAGR(p.24)
- • Recovery in M&HCV segment post-pandemic(p.24)
- • Strong growth in MCV haulage and MAV haulage segments(p.24)
- • Expansion of revenue from international markets(p.43)
- • Diversification of product offerings and customer base(p.50)
- • Backward integration capabilities and capacity expansion(p.49)
- • Expansion into commercial vehicle and tractor segments with dedicated market research(p.50)
- • Continuous growth through value engineering and process innovation(p.59)
- • Capacity expansion plans funded by IPO net proceeds(p.55)
- • Expansion into axle beam extrusion with single-piece construction benefiting durability and cost efficiency(p.118)
- • Increased in-house machining capabilities for hubs and brake drums reducing scrap and improving margins(p.118)
- • Strong CV industry growth and replacement demand supporting trailer axle sales(p.163)
- • Government infrastructure investment and Bharatmala project driving MHCV and tipper demand(p.167)
- • Backward integration into seamless tube manufacturing for axle beam production(p.113)
- • Expanding capacity for larger castings serving the tractor industry(p.118)
- • Expected constant rise in vehicle tonnage in CV market with increasing intensity of trailer axles for CV trucks(p.203)
- • Projected domestic CV sales CAGR of 4.5–6.5% between FY24 and FY29, with M&HCV segment growth of 3–5% CAGR(p.175)
- • Strategy to expand geographical reach through growing exports with new customer validation ongoing in Sweden and Japan(p.209)
- • Opportunity to create axle beam extrusion and backward integrate into seamless tube to reduce costs and improve margins(p.209)
- • Capacity expansion strategy targeting ₹700 million investment for new production lines including hydraulic covers for tractors(p.208)
- • Growing demand for higher horsepower tractors (41–50 hp segment at 60% of FY24 sales) and commercial tractor usage(p.184)
- • Tractor industry projected to grow at 4–6% CAGR between FY24 and FY29 driven by low penetration and farm mechanization(p.183)
- • Expansion of manufacturing capacity through capital work in progress(p.273)
- • Growth in commercial vehicle and tractor markets through specialized component manufacturing(p.266)
- • Potential for improving operational efficiency and reducing working capital requirements(p.277)
- • Expansion of axle business product profile and capabilities(p.314)
- • New customer acquisition and export expansion(p.314)
- • Capital expenditure investment for growth(p.315)
- • Growth in M&HCV and farm equipment segments(p.313)
Threats
- • Declining M&HCV segment in Fiscal 2024(p.24)
- • Demand linked to customer production and economic cycles(p.33)
- • Risk from vehicle electrification and shift to green energy(p.34)
- • EV adoption risk in HCV segment(p.34)
- • Dependence on infrastructure development and government initiatives(p.33)
- • Volatility in steel prices beyond company control(p.41)
- • Cannot fully pass through raw material cost increases to customers(p.41)
- • Intense price competition in industry(p.40)
- • Geographic concentration of revenue in India(p.42)
- • Susceptibility to local and regional factors in Jamshedpur(p.35)
- • Labour cost inflation and labour availability risks(p.46)
- • Competitive threats from domestic and international players(p.50)
- • Intense competition from global competitors with superior financial and technical resources(p.50)
- • Competitors able to produce equivalent products at lower costs(p.50)
- • Larger manufacturers potentially expanding into company's product segments(p.50)
- • Exposure to foreign exchange rate fluctuations on exports and equipment imports(p.55)
- • Dependence on customer-mandated cost reductions and operational constraints(p.59)
- • Rising power and fuel costs increasing operational expenses(p.58)
- • Stringent labor law compliance requirements in India(p.57)
- • Environmental and occupational safety regulatory compliance challenges(p.57)
- • Freight and transportation cost volatility from delivery penalties(p.59)
- • Volatility in Indian inflation and potential inability to pass costs to customers(p.73)
- • Fluctuation in commodity prices and raw material costs affecting profitability(p.117)
- • Regulatory changes in vehicle emission norms and design requirements(p.162)
- • Cyclicality in commercial vehicle industry dependent on economic conditions(p.162)
- • Dependence on diesel price fluctuations impacting transporter profitability and CV demand(p.165)
- • Monsoon and agricultural output variability affecting rural demand and tractor-related component demand(p.165)
- • Automotive and tractor industries highly cyclical and dependent on economic performance, with slowdowns reducing demand(p.197)
- • Tractor industry heavily dependent on monsoon performance; abnormal monsoons adversely impact agricultural sector and demand(p.197)
- • Regulatory-driven price escalations from BS-VI stage 2 and other emission norms implementation increase vehicle costs and reduce demand(p.198)
- • Rising and volatile raw material prices, especially steel, creating margin pressure if not passed to customers(p.198)
- • Intense competition in automotive components from both domestic and international players with scale advantages(p.225)
- • Shortage of skilled labor in manufacturing sector affecting production capacity and innovation(p.198)
- • Technology obsolescence risk as rapid advancements render existing manufacturing processes and equipment outdated(p.199)
- • Significant contingent liabilities including tax disputes and bills discounted(p.288)
- • Rising finance costs impacting profitability amid elevated interest rate environment(p.287)
- • Exposure to volatile raw material costs and commodity price fluctuations(p.287)
- • Dependence on working capital financing and secured borrowings against current assets(p.283)
- • Dependence on automotive and farm equipment sector cycles(p.314)
- • Exposure to interest rate fluctuations on variable-rate debt(p.337)
- • Foreign exchange risk from imports and exports(p.293)
- • Regulatory compliance burden and licensing requirements(p.344)
- • Supplier concentration and raw material availability risk(p.332)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sudhir Rai | Promoter | 57.68% | — |
| Anita Rai | Promoter | 28.10% | — |
| Sumeet Rai | Promoter | 7.02% | — |
| Kunal Rai | Promoter | 6.46% | — |
| Dipak Rai HUF | Promoter Group | 0.74% | — |
| Sudhir Rai | Promoter | 57.68% | [●] |
| Anita Rai | Promoter | 28.10% | [●] |
| Sumeet Rai | Promoter | 7.02% | [●] |
| Kunal Rai | Promoter | 6.46% | [●] |
| Sudhir Rai | Promoter | 57.68% | — |
| Anita Rai | Promoter | 28.10% | — |
| Sumeet Rai | Promoter | 0.74% | — |
| Kunal Rai | Promoter | 7.02% | — |
| Sudhir Rai | Promoter/Chairman and Managing Director | — | — |
| Anita Rai | Promoter/Whole-time Director | — | — |
| Sumeet Rai | Promoter/Whole-time Director | — | — |
| Kunal Rai | Promoter/Whole-time Director (Finance) and CFO | — | — |
| Sudhir Rai | Promoter Selling Shareholder | — | — |
| Anita Rai | Promoter Selling Shareholder | — | — |
| Sudhir Rai | Promoter Selling Shareholder | — | — |
| Anita Rai | Promoter Selling Shareholder | — | — |
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Kross IPO FAQs
What is the lot size of Kross IPO?
The minimum lot size of Kross IPO is 62 shares. One lot costs ₹14,880 at the cut-off price.
When does Kross IPO open and close?
Kross IPO opened for subscription on 09 Sep 2024 and closed on 11 Sep 2024.
What is the listing date of Kross IPO?
Kross IPO listed on 16 Sep 2024.