Kross Limited Eyes IPO, Files DRHP with SEBI

Kross Limited to Raise Funds through IPO, Files DRHP for Rs 500 Crore Issue

Kross Limited, specializing in commercial vehicle components, files DRHP with SEBI for a Rs. 500 crore IPO, including a fresh issue and an offer for sale.

JAMSHEDPUR – Kross Limited, a key player in manufacturing trailer axle and suspension assemblies, has filed a Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO) to raise funds.

The Jamshedpur-based company’s IPO is set at Rs. 500 crore, comprising a fresh issue of Rs. 250 crore and an offer for sale (OFS) of the same amount by promoter selling shareholders.

Sudhir Rai and Anita Rai, the promoters, are offering equity shares of Rs. 168 crore and Rs. 82 crore respectively in the OFS.

The company is considering a Pre-IPO placement of Rs. 50 crore, which may adjust the fresh issue size accordingly.

Kross Limited boasts a diverse clientele, including major OEMs like Ashok Leyland and Tata International DLT Private Limited, as well as new international customers such as a Japanese commercial vehicle OEM and Leax Falun AB.

The company plans to allocate the net proceeds from the fresh issue towards various strategic goals, including capital expenditure, debt repayment, working capital needs, and general corporate purposes.

Since 1991, Kross Limited has emerged as a leading producer of machined and forged parts in India, serving the commercial vehicle and tractor segment from its five manufacturing facilities in Jamshedpur, Jharkhand.

The company’s leadership includes Kunal Rai, CFO; Anita Rai, Full-Time Director; Sumeet Rai, Full-Time Director; and Sudhir Rai, Chairman and Managing Director.

For the fiscal year 2023, Kross Limited reported an operating revenue of Rs. 489 crore and a profit after tax of Rs. 31 crore.

Equirus Capital Private Limited is the book running lead manager for the offer, with plans for the equity shares to be listed on the NSE and BSE.