MUMBAI - Kross Limited, a manufacturer of critical components for commercial vehicles and farm equipment, has announced plans to raise Rs 500 crore through an initial public offering (IPO). The company, known for supplying domestic original equipment manufacturers (OEMs) such as Ashok Leyland and Tata International DLT Private Limited, as well as international clients like Leax Falun AB in Sweden and a Japanese commercial vehicle producer, is preparing for a public listing.
The IPO will consist of fresh share issuance coupled with an Offer-for-Sale by promoters Sudhir Rai and Anita Rai. In a strategic move to further bolster its financial position, Kross may also undertake a pre-IPO placement to gather an additional Rs 50 crore.
Kross's financial health is on solid ground as evidenced by the company's performance in the fiscal year 2023. It reported a significant profit of Rs 30.93 crore and revenue of Rs 488.6 crore, along with an EBITDA of Rs 57.5 crore. The upward trend continued into the first quarter of FY24, with the firm earning Rs 8 crore in profit on revenues of Rs 143.7 crore.
The capital raised from the IPO is earmarked for several key areas:
- Acquisition of new machinery worth Rs 70 crore
- Repayment of financial debts amounting to Rs 90 crore
- Bolstering working capital by Rs 30 crore
- Addressing general corporate needs
Kross's draft red herring prospectus (DRHP) was presented to the Securities and Exchange Board of India (SEBI) last Thursday, signaling the start of its journey towards the IPO. The company has engaged Equirus Capital as the book-running lead manager and KFin Technology as the registrar for its anticipated stock listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
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