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Kross Limited, 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 (M&HCV) and farm equipment segments has filed the draft red herring prospectus (DRHP) with capital markets regulator, SEBI to raise funds through an initial public offering (IPO).
The Rs. 500 crore Initial Public Offering of the Jamshedpur-based company comprises of a Fresh Issue of equity shares aggregating up to Rs. 250 crore and an Offer for Sale aggregating up to Rs. 250 crore by the Promoter Selling Shareholders. The OFS portion comprises of equity shares aggregating upto Rs. 168 crore by Sudhir Rai and Rs. 82 crore by Anita Rai.
A Pre-IPO placement of specified securities may be undertaken by the company for up to Rs. 50 crore. If the Pre-IPO placement is undertaken, the fresh issue size will be reduced to the extent of such Pre-IPO placement.
The company, which counts Ashok Leyland and Tata International DLT Private Limited as its key clients supplies its products to a diversified client base which includes large original equipment manufacturers (OEMs) manufacturing M&HCV and tractors, tier one suppliers to the OEMs in the M&HCV segment, domestic dealers and fabricators for its trailer axle and suspension business.
It has also attracted new customers such as Leax Falun AB, a Sweden based company manufacturing propeller shafts for commercial vehicle OEMs and a Japan based OEM manufacturing commercial vehicles.
Kross Limited proposes to utilize the Net Proceeds of the Fresh Issue towards funding of capital expenditure requirements of the company towards purchase of machinery and equipment (Rs. 70 crore); 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 (Rs. 90 crore); funding working capital requirements of the company (Rs. 30 crore); and general corporate purposes.
Established in 1991, Kross Limited is a prominent manufacturer of a wide range of forged and machined components in India, with a growing export presence globally. It manufactures a wide range of high performance and safety critical components for the commercial vehicle and tractor segment and operates out of its five manufacturing facilities in Jamshedpur, Jharkhand which are equipped with capabilities to design, develop and manufacture its diverse product portfolio.
The Promoters of the company are Sudhir Rai, Chairman and Managing Director; Anita Rai, Whole -Time Director; Sumeet Rai, Whole -Time Director and Kunal Rai, Chief Financial Officer.
As of Fiscal 2023 its revenue from operations was Rs. 489 crore with a PAT of Rs. 31 crore.
The Book Running Lead Manager to the offer is Equirus Capital Private Limited. The equity shares are proposed to be listed on BSE and NSE.
