Review of Kross Limited IPO: Lot Size, Check Issue Date, Price

Kross IPO Price: ₹228 to ₹240 per share
IPO Dates: 9 September 2024 – 11 September 2024

Product Portfolio

Kross Limited offers an extensive product range, including axle shafts, companion flanges, anti-roll bars, stabilizer bar assemblies, suspension linkages, differential spiders, bevel gears, planet carriers, inter-axle kits, rear-end spindles, pole wheels, and various tractor components. These include parts for hydraulic lift arrangements, power take-off (PTO) shafts, and front axle spindles. The company manufactures safety-critical components for the M&HCV and agricultural equipment segments, catering to the needs of major original equipment manufacturers (OEMs) in these industries.

Manufacturing Facilities

The company operates five ISO 9001:2015 certified manufacturing facilities in Jamshedpur, Jharkhand. These facilities are equipped with advanced machinery, including forging presses and upsetting lines with induction heating for billets, a foundry with a high-pressure moulding line, high-precision machining tools such as turning centres, vertical and horizontal milling centers, grinding, broaching, hobbing, shaping machines, and robotic welding systems.

Additionally, the facilities feature in-house cathodic electro dip (CED) painting systems, powder coating, spray painting, heat treatment furnaces, and induction hardening systems. Kross Limited has the capacity to manufacture forged parts weighing up to 40 kg and is expanding its production capabilities through facility enhancements and additional production lines.

Client Base and Market Presence

Kross Limited supplies its products to a diversified client base, including major OEMs that manufacture M&HCVs and tractors, tier-one suppliers to OEMs in the M&HCV segment, and domestic dealers and fabricators. The company has established long-term relationships with key clients, including Ashok Leyland Limited and Tata International DLT Private Limited, due to its consistent delivery of high-quality products. In August 2023, Kross Limited commenced bulk exports to Leax Falun AB, a Sweden-based company manufacturing propeller shafts for commercial vehicle OEMs, supplying universal joint crosses with plans to expand to other critical parts.

Growth and Expansion

In 2019, Kross Limited started manufacturing and selling trailer axle and suspension assemblies, witnessing robust growth between Fiscal 2021 and Fiscal 2024. The company has emerged as one of India’s fastest-growing players in the organized trailer axle manufacturing industry, competing with major manufacturers. Kross Limited’s forward and backward integration capabilities, including design, process engineering, forging, casting, and machining, provide greater control over production processes, timelines, pricing, and quality.

Certifications and Quality Standards

Kross Limited’s manufacturing facilities have obtained several quality certifications, including ISO 9001:2015, IATF 16949:2016, ISO 14001:2015, and ISO 45001:2018 from TÜV NORD CERT GmbH. These certifications cover the manufacture of various components such as axle shafts, PTO shafts, lift shafts, universal joints, differential spiders, companion flanges, bevel kit assemblies, and trailer axle assemblies, underscoring the company’s commitment to maintaining high standards in quality and safety.

Innovation and Customer Service

Kross Limited leverages its in-house design capabilities and advanced technology to develop proprietary high-performance and safety-critical components. The company collaborates closely with OEMs on the design and development of products, such as anti-roll bars and stabilizer bars, ensuring tailored solutions that meet specific customer requirements. For its trailer axle and suspension assembly business, Kross Limited provides forward integration through a network of sales and service locations across key states in India. A custom service software developed by Salesforce supports accurate tracking of service complaints and service history, ensuring prompt and efficient customer service.

Bidding Starts In

Kross IPO Specifics:

Kross IPO Timetable (Important Dates)

Kross IPO Lot Size

Bidders have the opportunity to bid for a minimum of 62 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.

Kross IPO Reservation

Kross Limited IPO Financial Information

Kross Limited witnessed a substantial 27% growth in its total revenue while observing a significant 45% increase in profit after tax (PAT) during the period spanning from the financial year concluding on March 31, 2024, to March 31, 2023.

Key Performance Indicator – Kross IPO

Objects of the Issue:

The company intends to use the net proceeds for the following purposes:

1. General corporate purposes.
2. Funding capital expenditure for the purchase of machinery and equipment.
3. Repaying or prepaying, either fully or partially, certain outstanding borrowings from banks and financial institutions.
4. Meeting the company’s working capital requirements.

Prospectus Links:

Prospectus: Official documents that provide detailed information about the IPO and the company.