The Rs 500 crore IPO of the Jamshedpur-based company includes a fresh equity sale of up to Rs 250 crore and an offer for sale (OFS) of up to Rs 250 crore by the promoter shareholders. Under the OFS, Sudhir Rai and Anita Rai will be selling part of their stakes in the company.
Kross plans to use the net proceeds to fund capital expenditure for the purchase of machinery and equipment, repay debt, cover working capital requirements, and address other general corporate purposes.
Kross is a leading manufacturer of a diverse range of forged and machined components in India, with an expanding global export presence.
The company produces high-performance and safety-critical components for the commercial vehicle and tractor segments. It operates five manufacturing facilities in Jamshedpur, Jharkhand, which are equipped with the capabilities to design, develop, and manufacture its broad product portfolio.The company, which counts Ashok Leyland and Tata International DLT among its key clients, serves a diverse customer base. This includes major original equipment manufacturers (OEMs) in the M&HCV and tractor segments, tier-one suppliers to these OEMs, domestic dealers, and fabricators involved in its trailer axle and suspension business.Additionally, Kross has attracted new customers such as Leax Falun AB, a Sweden-based company specializing in propeller shafts for commercial vehicle OEMs, and a Japan-based OEM that manufactures commercial vehicles.For the year ending March 2024, the company reported a 27% year-on-year (YoY) increase in revenue from operations, reaching Rs 620 crore. Net profit after tax also grew by 45%, totaling Rs 45 crore.
Equirus Capital is the sole book-running lead manager to the offer.
