Kross Limited IPO

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They are a diversified industrial player, specializing in the manufacturing and supply of trailer axle and suspension assemblies, as well as a wide range of forged and precision-machined high-performance safety-critical parts. Their primary markets are the medium and heavy commercial vehicles (M&HCV) and farm equipment segments.

Core Competencies and Market Position

Their company is widely recognized as a prominent manufacturer within the trailer axle and suspension assembly sector in India, a status validated by industry reports such as those from CRISIL. Since their inception into this space in 2019, they have experienced significant growth, particularly between Fiscal 2021 and Fiscal 2024, positioning them as one of the fastest-growing players in the organized trailer axle manufacturing industry. They compete directly with major established manufacturers, leveraging their robust in-house manufacturing capabilities and extensive product development expertise.

Product Development and Innovation

With over three decades of experience, they have honed their product development capabilities, enabling them to design and deliver proprietary products such as trailer axles and suspension assemblies. Their competency in manufacturing these critical components in-house differentiates them from many competitors and underscores their commitment to quality and innovation. This in-house capability ensures better control over the production process, leading to superior product reliability and performance, which is crucial in the high-stakes environments their products serve.

Growth and Future Prospects

Their focus on quality, innovation, and customer satisfaction has not only bolstered their reputation but has also driven robust growth in a competitive industry. As they continue to expand, they remain committed to advancing their manufacturing processes and product offerings to meet the evolving needs of the M&HCV and farm equipment segments.

In summary, their company stands out as a leading and rapidly growing manufacturer of trailer axles and suspension assemblies in India, with a strong emphasis on innovation, in-house production capabilities, and market responsiveness. Their journey of growth and industry leadership is a testament to their strategic focus and unwavering commitment to excellence.

Objects of the Kross Limited IPO:

The Company proposes to utilize the Net Proceeds towards funding the following objects: i. Funding of capital expenditure requirements of the Company towards the purchase of machinery and equipment; ii. Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company, from banks and financial institutions; iii. Funding working capital requirements of the Company; and iv. General corporate purposes Total number of share issue :- i. Fresh issue is 10,416,667 shares, ii. Offer for sale is 10,416,667 shares.
DRHP of Kross Limited IPO
RHP of Kross Limited IPO

Kross Limited IPO Details:

Open Date: Sep 09 2024
Close Date: Sep 11 2024
Total Shares: 20,833,334
Face Value: ₹ 5 Per Equity Share
Issue Size: 500.00 Cr.
Lot Size: 62 Shares
Issue Price: ₹ 228 - 240 Per Equity Share
Listing At: NSE,BSE
Listing Date: Sep 16 2024

Promoters And Management:

Sudhir Rai is the Chairman and Managing Director of the Company. He holds a bachelor’s degree in science from the University of Delhi and diploma in business administration from the Xavier Institute of Management. He is currently associated with Tuff Seals Private Limited as a Director and is a director on the board of Tuff Seals Private Limited since 1982, he was associated as a director with Narbheram & Co Limited from September 20, 2004 to August 06, 2007 and as a director with TSF Limited from October 18, 2005 to September 01, 2015, each of which are his associations post his association with the Company. He has been associated with the company since incorporation and is primarily involved in policy matters of the company. Anita Rai is a Whole-time Director of the Company. She holds a bachelor’s degree in education from University of Delhi and postgraduate certificate in logistics and supply chain management from XLRI Jamshedpur, School of Business and Human Resources. She has been associated with the company since incorporation and is primarily involved in store and purchase activity of the company. Sumeet Rai is a Whole-time Director of the Company. He has a bachelor’s degree in science in engineering (mechanical engineering) from the University of Michigan. He has been associated with the company since April 1, 2008 and is primarily involved in plant operation of the company.

Financials of Kross Limited IPO:

Particulars ( In Million )
2022
2023
2024
Revenue from Operations 2,975 4,886 6,203
Other Income 4 7 12
Total Revenue 2,979 4,894 6,215
Cost of material Consumed 1,596 2,942 3,787
Changes in inventories 7 -45 -228
Employees Benefit Expenses 202 265 304
Other Expenses 874 1,149 1,532
EBITDA 300 583 820
OPM (%) 10.06% 11.90% 13.19%
Depreciation & Amortisation 55 43 58
EBIT 245 539 762
Finance Cost 82 122 149
PBT 163 417 613
Tax 41 108 164
PAT 122 309 449
NPM (%) 4.09% 6.32% 7.22%
No.of Shares 64.50 64.50 64.50
EPS 1.88 4.79 6.95

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Kross Limited 620 45 6.95 34.5 240 1,548
Ramkrishna Forgings Limited 3,955 341 18.89 51.4 977 17,674
Jamna Auto Industries Limited 2,427 205 5.15 23.2 120 4,793
Automotive Axles Limited 2,229 166 109.95 18.4 1,983 2,996
GNA Axles Limited 1,506 100 23.30 19.7 434 1,862
Talbros Automotive Components Limited 778 110 17.82 24.4 330 2,034
* All the data is as per FY24.

Recommendation on Kross Limited IPO:

To be updated shortly.

Lead Manager of Kross Limited IPO:

  1. Equirus Capital Private Limited

Registrar of Kross Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Kross Limited M-4, Phase VI, Gamharia, Adityapur Industrial Area, Jamshedpur - 832108 Phone: +91 0657 2203812 Email: investors@krossindia.com Website: https://www.krosslimited.com/

Discussion on Kross Limited IPO:

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