Autoparts maker Kross' IPO receives 88% subscription on first day of offer

The initial public offer of auto parts manufacturer Kross Ltd received 88 per cent subscription on the first day of bidding on Monday.

The initial share sale received bids for 1,34,95,044 shares against 1,53,50,877 shares on offer, according to NSE data.

The category for Retail Individual Investors (RIIs) received 1.50 times subscription while the portion for non-institutional investors got subscribed 61 per cent.

Kross Ltd on Friday said it has mobilised Rs 150 crore from anchor investors.

The Jamshedpur-based company's IPO is a combination of a fresh issue of equity shares worth Rs 250 crore and an Offer for Sale (OFS) aggregating up to Rs 250 crore by the promoters.

 

The OFS portion consists of equity shares to the tune of up to Rs 168 crore by Sudhir Rai and Rs 82 crore by Anita Rai.

The issue, with a price band of Rs 228-240 per share, will conclude on September 11.

Kross proposes to utilise the net proceeds of the fresh issue for the purchase of machinery and equipment, payment of debt, and funding the working capital requirements of the company. Besides, a portion will be used for general corporate purposes.

Founded in 1991, Kross 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.

Equirus Capital is the sole book-running lead manager to the issue. The equity shares are proposed to be listed on the BSE and NSE.