About the Company:
Kross Ltd. is a prominent manufacturer of a wide range of forged and machined components in India, with a growing export presence globally.
Company manufactures a wide range of high performance and safety critical components for the commercial vehicle and tractor segment.
Company is widely recognized as one of the prominent manufacturers of trailer axles & suspension assembly in India. It is one of the few players domestically, with the competency to manufacture trailer axles and suspension assembly-in house.
Company utilises the latest design and manufacturing in developing products, thus enabling it to become one of the fastest growing player in the organised trailer axle manufacturing industry.
Company has a diversified product portfolio catering to the commercial vehicle and tractor industry.
Key products manufactured by the company are companion flanges, axle shafts, rear end spindles, anti-roll bars, differential spiders, inter-axle kits, suspension linkages, universal joints and crosses, pole wheels, scam shafts and variety of tractor parts for the hydraulic lift arrangement, PTO shafts, and spindle front axles.
Company’s Client Base:
Company supplies 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 our trailer axle and suspension business.
In the past company has been recognized by customers for the high-quality of the products supplied by us, which is one of the factors that has helped us establish long term relationships with several large domestic and global OEMs.
Company’s client includes, Ashok Leyland Limited, a leading Indian automobile OEM and a Indian farm equipment OEM, each of whom we have been associated with for a period of more than 18 years and Tata International DLT Private Limited with whom we have been associated since 2019.
Due to company’s track record and diverse product portfolio, we have also been able to attract new customers such as Leax Falun AB and a Japan based OEM manufacturing commercial vehicles.
Company has also commenced bulk exports to Leax Falun AB, a Sweden based company manufacturing propeller shafts for commercial vehicle OEMs, in August 2023 with supplies of Universal Joint Crosses and are in stages of validation for other critical parts.
Company’s Segment Wise Revenue:
Management Team:
- Mr. Sudhir Rai (Designation: Chairman and Managing Director)
- Mr. Anita Rai (Designation: Whole-time Director)
Objectives of the Issue:
Offer For Sale: (Rs.250cr )
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.250 cr)
- Funding of capital expenditure requirements of our Company towards purchase of machinery and equipment.
- Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company, from banks and financial institutions.
- Funding working capital requirements of the Company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding of capital expenditure requirements of our Company towards purchase of machinery and equipment | 70 cr |
| Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company, from banks and financial institutions | 90 cr |
| Funding working capital requirements of the Company | 30 cr |
Positives for the Company:
Well Established long-standing relationships with several Indian and global customers.
- In over three decades of our operations, we have established long-standing relationships with several well established Indian and global customers like OEMs Ashok Leyland Limited, Tata International DLT Private Limited, a leading Indian automobile OEM, a leading Indian farm equipment OEM, and global Tier I supplier for auto components.
- Company’s diversified product portfolio helps us cater to the requirements of a broad spectrum of customers which includes marquee domestic and global OEMs for the M&HCV segment and their Tier 1 suppliers, domestic dealers and fabricators for our trailer axle and suspension business and in the last three fiscals, we have served over 200 customers.
Diversified product portfolio with a focus on continuous value addition.
- Company is a diversified player involved in manufacturing and supply of wide range of forging and machined precision components and assemblies. Company is widely recognized as a prominent manufacturer of trailer axles and suspension assembly in India and are also a prominent manufacturer of differential spiders in the M&HCV segment
- Further, company is a specialist in manufacturing high precision safety critical components which include companion flanges, axle shafts, rear end spindles, anti-roll bars and stabiliser bar assembly, differential spiders and inter-axle kits, bevel gear assembly etc.
Company plans to Expand the geographical reach through growing exports.
- Company’s revenue from operations have grown at a CAGR of 44.40% between Fiscal 2022 and Fiscal 2024, and have been predominantly focussed on domestic market with exports contributing to less than 1.50% of our revenue from operations in each of the Fiscal 2024, Fiscal 2023 and Fiscal 2022.
- Company aims to leverage our diverse product portfolio, customer acceptance in domestic markets and backward integrated manufacturing facilities to expand into international markets.
- Company believes that as exports increase to international markets, we will be able to increase our addressable market, expand our geographical footprint and improve our profitability.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 297.8 | 489.3 | 621.4 |
| Net Profit | 12.1 | 30.9 | 44.8 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Kross Limited | 5 | 8.30 | 28.90 | 30.57% | 27.14 |
| Automotive Axles Ltd | 10 | 109.95 | 17.05 | 18.97% | 579.63 |
| GNA Axles Ltd | 10 | 23.28 | 17.32 | 12.47% | 186.69 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 9th September 2024 |
| Issue Closes on | 11th September 2024 |
| Issue Price | Rs.228 -240 |
| Face Value | Rs.5 |
| Retail Category Allocation | 35 % |
| Minimum Lot | 62 Shares |
| Minimum Investment | Rs.14,880 |
| Issue Constitutes | 32.29 % |
| Issue Size | Rs.500 cr ($ 60 million ) |
| Market Cap | Rs.1548 cr ($ 184 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,04,16,667 (Rs.250 cr) |
| Equity Shares Offered (OFS) | 1,04,16,667 (Rs.250 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 2,08,33,334 (Rs.500 cr) |
| Equity Shares Prior to the Issue | 5,40,92,756 |
| Equity Shares after the Issue | 6,45,09,423 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 8.30 | 28.90 | 30.57% | 27.14 |
Also Read: Complete List of NSE/BSE Holidays List>>
Important Dates:
| Finalization of Basis of Allotment | on or Before 12th September 2024 |
| Initiation of Refunds | on or Before 13th September 2024 |
| Credit of Equity Shares: | on or Before 13th September 2024 |
| Listing Date: | on or Before 16th September 2024 |
| Company Contact Info: |
|---|
| KROSS LIMITED M-4, Phase VI, Gamharia, Adityapur Industrial Area, Jamshedpur – 832108, Jharkhand, India. Telephone: +91 0657 2203812 E-mail: investors@krossindia.com Website: www.krosslimited.com |
| Registrar to the Issue: |
|---|
| KFin Technologies Limited Selenium Tower B, Plot No.31-32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad-500032, Telangana, India Tel: +91 40 6716 2222 E-mail: krosslimited.ipo@kfintech.com Website: www.kfintech.com |
