The allotment of shares for Kross Limited’s Initial Public Offering (IPO) is expected to be finalized today, bringing an important step in the IPO process for investors. The allotment is highly anticipated due to the strong response the IPO received from investors, which resulted in significant oversubscription.
In this news report, we will provide a simple, detailed explanation of how investors can check their allotment status, key details about the IPO, and what to expect in the next few days.
How to Check the IPO Allotment Status
Investors who applied for Kross Limited’s IPO can check their allotment status in two ways:
- Through the Registrar: Investors can visit the website of Kfin Technologies Limited, the registrar of the IPO. The allotment status can be checked by providing basic details such as PAN number or application number.
- Through the BSE Website: Investors can also check their allotment status on the Bombay Stock Exchange (BSE) website. By entering the correct application details, investors can view whether or not shares have been allotted to them.
IPO Oversubscription: Strong Demand from Investors
The Kross Limited IPO opened for public subscription between September 9 and September 11, 2024. The IPO received an excellent response, as shown by its oversubscription rate of 17.66 times. This means that there were more bids for the shares than the number of shares available.
The response from different investor categories was as follows:
- Non-Institutional Investors (NIIs): The NII portion was oversubscribed 23.40 times, reflecting significant demand from larger investors.
- Retail Individual Investors (RIIs): The retail portion was oversubscribed 11.26 times, showing strong interest from small individual investors.
Share Allotment Process for Retail Investors
Since the retail portion of the IPO was heavily oversubscribed, shares will be allocated to retail investors on a proportional basis. This means not all retail investors may receive the full number of shares they applied for.
For those retail investors who do not receive an allotment, the refund process is expected to start on September 13, 2024.
Credit of Shares to Demat Accounts and Listing Date
Once the allotment is finalized, the shares that have been allotted will be credited to investors’ demat accounts on the same day as the refunds. This process is expected to take place on September 13, 2024.
Following this, the Kross Limited IPO is expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The tentative date for listing is September 16, 2024. Once listed, investors can start trading the shares on these platforms.
IPO Price and Purpose of Funds
The price band for the Kross Limited IPO was set between ₹228 and ₹240 per share. The company plans to use the money raised from the IPO for various purposes:
- Purchasing machinery and equipment to expand its manufacturing capacity.
- Repaying or prepaying outstanding borrowings to reduce the company’s debt.
- Funding working capital requirements to support day-to-day operations.
- General corporate purposes, including covering expenses related to running the business.
Kross Limited: A Growing Company in the Manufacturing Sector
Kross Limited has grown to become a well-known manufacturer of trailer axles and suspension assemblies in India. The company began manufacturing and selling these products in 2019 and has seen strong growth over the past few years, especially from Fiscal 2020 to Fiscal 2023.
The company produces safety-critical components for the medium and heavy commercial vehicle (M&HCV) and farm equipment segments. These are important parts that need to perform reliably to ensure the safety of the vehicles.
Partnerships with Major Companies
Kross Limited has developed long-term relationships with some of the biggest names in the industry, including:
- Ashok Leyland Limited, one of India’s largest automobile manufacturers, with whom Kross Limited has been associated for over 18 years.
- A major Indian farm equipment manufacturer, also for over 18 years.
- Tata International DLT Private Limited, since 2019.
These relationships highlight Kross Limited’s importance in the manufacturing sector and its potential for future growth.
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