Kross IPO Subscribed 16.81 Times On Final Day

The initial public offering of Kross Ltd. has been subscribed 16.81 times on the third and final day on Wednesday. The IPO was subscribed 2.56 times on day two and 88% times on day one.

The company is looking to mop up Rs 500 crore through its maiden share sale. The offering consists of a fresh issue as well as an offer for sale, each worth Rs 250 crore.

The price band for the IPO is set at Rs 228–240 per share. The market value of the company at the upper end of the price band is Rs 1,548 crore.

The company is a diversified player in manufacturing and supply of trailer axle and suspension assembly. It also offers a wide range of forged equipment for medium and heavy commercial vehicles and farm equipment segments.

It raised Rs 149 crore from anchor investors on Friday ahead of its initial public offering. The company allotted 62.49 lakh shares at Rs 240 apiece to 19 anchor investors.

• Issue opening: Sept. 9.

• Issue closing: Sept. 11.

• Issue price: Rs 228-240 per share.

• Fresh issue: Rs 250 crore.

• Offer for sale: Rs 250 crore.

• Total issue size: Rs 500 crore.

The company will use the proceeds to primarily repay borrowing and fund future capital expenditure. It will be repaying debt of about Rs 90 crore, while funding capex with Rs 70 crore raised in the IPO. The company is looking to incur capex for funding purchase of machinery and equipment.  

It will also be reserving about Rs 30 crore for funding working capital.

The IPO has been subscribed 16.81 times as of 5:30 p.m. on Wednesday.

• Institutional investors: 23.32 times.

• Non-institutional investors: 22.24 times.

• Retail investors: 10.76 times.

The grey market premium of Kross was Rs 50 as of 9:02 a.m., implying a 20.83% gain over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 290 per share.

GMP is not an official price quote for the stock and is based on speculation. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.