Kross to hit Dalal Street with Rs 500 crore IPO on Sept 9

Kross Limited, a well-established manufacturer in the medium and heavy-duty commercial vehicle (M&HCV) and agricultural equipment sectors, is set to launch its Initial Public Offering (IPO). With a total issue size of Rs 500 crores, the IPO comprises both a fresh issue of shares and an offer for sale by existing shareholders. This IPO marks a significant milestone for Kross Limited, formerly known as Kross Manufacturers (India) Private Limited, as it seeks to expand its operational capabilities and strengthen its market position.

IPO Details and Key Dates

The Kross IPO is a book-built issue, totaling Rs 500 crores, split evenly between a fresh issue of 1.04 crore shares amounting to Rs 250 crores and an offer for sale of an equal number of shares. Investors can subscribe to the IPO from September 9, 2024, to September 11, 2024. The allotment of shares is expected to be finalized on September 12, 2024, with the listing on both the BSE and NSE anticipated on September 16, 2024. Equirus Capital Private Limited is the lead manager for this IPO, while Kfin Technologies Limited has been appointed as the registrar.

Objectives of the IPO

Kross Limited has outlined several key objectives for the utilization of the IPO proceeds. The funds will be directed towards the purchase of new machinery and equipment, which will enhance the company’s production capacity. Additionally, a portion of the proceeds will be used to repay or prepay certain outstanding borrowings, reducing the company’s debt burden. The remaining funds will be allocated to meet the company’s working capital requirements and for general corporate purposes, ensuring a strong financial foundation for future growth.

Conclusion: Kross Limited’s upcoming IPO presents a promising opportunity for investors looking to invest in a company with a strong track record in the M&HCV and agricultural equipment sectors. With a clear plan to utilize the proceeds for expansion and debt reduction, Kross Limited is poised for further growth and increased market share.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.