Kross Ltd IPO Sees Strong Demand with 2.56x Subscription

The initial share sale of Kross Ltd garnered 2.56 times subscription by the second day, with significant interest from retail and non-institutional investors. The IPO includes a fresh issue worth Rs 250 crore and an Offer-for-Sale by promoters. Funds will be used for machinery, debt repayment, and working capital.

The initial share sale of auto parts manufacturer Kross Ltd received a strong response, with a 2.56 times subscription on the second day of bidding on Tuesday.

The IPO, which closes on September 11, witnessed bids for 39,275,140 shares versus 15,350,877 shares on offer, according to NSE data. Retail Individual Investors showed notable interest, with their quota subscribed 3.87 times, whereas non-institutional investors recorded a subscription rate of 2.87 times. Qualified Institutional Buyers (QIBs) were less enthusiastic, with only a 2 percent subscription.

The Jamshedpur-based company successfully raised Rs 150 crore from anchor investors on Friday. The IPO consists of a fresh issue worth Rs 250 crore and an Offer-for-Sale (OFS) amounting to up to Rs 250 crore by promoters Sudhir Rai and Anita Rai. Priced between Rs 228-240 per share, Kross plans to use the net proceeds for machinery purchases, debt repayment, and working capital, along with general corporate purposes.