Kross IPO Anchor Allocation Hits 30% Ahead of 9th September Opening

Kross IPO saw a positive anchor allocation response, with 30% of the total IPO size subscribed by anchor investors. Out of 20,833,334 shares on offer, anchors picked up 6,249,999 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 6th September 2024, just ahead of the IPO opening on 9th September 2024.

The book-built issue of ₹500.00 crores comprises a fresh issue of 10,416,667 shares aggregating ₹250.00 crores and an offer for sale of 10,416,667 shares aggregating ₹250.00 crores. The price band is set at ₹228 to ₹240 per share, with a face value of ₹5 per share. This includes a share premium of ₹235 per share at the upper end of the price band.

The anchor allocation process, which took place on 6th September 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹240 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the Kross IPO looks as follows:

Notably, the 62,49,999 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 50% before the anchor allocation to 20% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Kross Limited IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 12th October 2024
• Lock-in Period (Remaining Shares): 11th December 2024

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.
 

Anchor Investors in Kross IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 6th September 2024, Kross IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 6,249,999 shares were allotted to 19 anchor investors. The allocation was done at the upper IPO price band of ₹240 per share, resulting in an overall anchor allocation of ₹150.00 crore. The anchors have already absorbed 30.00% of the total issue size of ₹500.00 crore, indicating strong institutional demand.

Out of the allocation of 6,249,999 Equity Shares to the Anchor Investors, 3,916,631 Equity Shares (i.e., 62.67% of the total allocation to Anchor Investors) were allotted to 9 domestic mutual funds who have applied through a total of 13 schemes.

Key IPO Details:

• IPO Size: ₹500.00 crores
• Shares Allocated to Anchors: 6,249,999
• Anchor Subscription Percentage: 30%
• Listing Date: 16th September 2024
• IPO Opening Date: 9th September 2024
   

About Kross IPO and How to apply for Kross IPO

Kross Limited, formerly known as Kross Manufacturers (India) Private Limited, was established in 1991. The company manufactures and supplies trailer axles and suspensions, along with a wide range of high-performance forged and precision machined safety critical parts for medium and heavy-duty commercial vehicles (M&HCV) and agricultural equipment.

The company's product portfolio includes axle shafts, companion flanges, anti-roll bars and stabiliser bar assembly, suspension linkages, differential spiders, bevel gears, planet carriers, inter-axle kits, rear-end spindles, pole wheels, and various tractor components for hydraulic lift arrangements, power take-off (PTO) shafts, and front axle spindles.

Kross Limited has five ISO 9001:2015 certified manufacturing facilities in Jamshedpur, Jharkhand, equipped with advanced technology for forging, foundry, machining, and heat treatment processes. As of 30th June 2024, the company had 528 permanent employees.
 

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