Kross Limited’s IPO is scheduled to open on September 9, 2024, and close on September 11, 2024. The company aims to raise ₹500 crores through the IPO.

IPO Details

• Issue Type: Book-built Issue
• Issue Size: ₹500 crores
• Price Band: ₹228-₹240 per share
• Face Value: ₹5 per share
• Price Band : ₹228 to ₹240 per share
• Lot Size: 62 Shares
• Total Issue Size :₹500.00 Cr
• Fresh Issue: ₹250.00 Cr
• Offer for Sale: ₹250.00 Cr
• Lead Manager: JM Financial Limited
• Registrar: Kfin Technologies Limited

Timeline

IPO Open Date:	September 09, 2024
IPO Close Date:	September 11 , 2024
Basis of Allotment:	September 12, 2024
Refunds:	September 13, 2024
Credit to Demat Account:	September 13, 2024
IPO Listing Date:	September 16, 2024

About Company

Kross Limited is a leading manufacturer of bicycles in India. The company has a strong presence in the domestic market and offers a wide range of bicycles for different customer segments.

Core Business:

• Bicycle Manufacturing: Kross Limited specializes in manufacturing bicycles for various purposes, including road bikes, mountain bikes, and electric bikes.
• Distribution Network: The company has a robust distribution network across India to reach customers efficiently.

Market Position:

• Kross Limited is one of the leading bicycle brands in India, known for its quality products and innovative designs.
• The company has a strong customer base and a focus on brand building.

Future Outlook:

• The Indian bicycle market is growing, driven by increasing health awareness and a preference for sustainable transportation.
• Kross Limited aims to expand its product range, increase its market share, and explore export opportunities.
• The company may also invest in research and development to develop new bicycle technologies.

Here are some resources to learn more about company

• Read DRHP Here

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Objective

The primary objectives of the Kross Limited IPO are:

1. Raising Capital: The company aims to raise ₹500 crores through the IPO, which will be used for:
   • Expansion: Funding the expansion of manufacturing facilities and distribution network.
   • Working Capital: Meeting the day-to-day operational expenses of the business.
   • General Corporate Purposes: Supporting other growth initiatives and strategic investments.
2. Brand Visibility: The IPO will increase the visibility of Kross Limited among investors and the general public, enhancing its brand recognition and credibility.
3. Part Exit for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing existing shareholders to partially exit their investment.

By achieving these objectives, Kross Limited aims to strengthen its financial position, expand its business, and enhance its market presence.

POSITIVE

• Growing Market: The Indian bicycle market is expanding, driven by increasing health awareness and a preference for sustainable transportation.
• Strong Brand: Kross Limited has a strong brand presence and a loyal customer base.
• Product Diversification: The company offers a wide range of bicycles to cater to different customer segments.
• Distribution Network: A well-established distribution network can help reach a wider customer base.

NEGATIVE

• Competition: The bicycle market is competitive, with both domestic and international players.
• Raw Material Costs: Fluctuations in the prices of raw materials used in bicycle manufacturing can impact profitability.
• Regulatory Changes: Changes in government policies related to transportation or taxation can affect the industry.

So, How Does Kross Limited IPO Fare in Terms of Financials ?

Financial Review of Kross Limited

Financial Details

Period Ended	Assets	Revenue	PAT	Net Worth	Total Borrowing
31 Mar 2024	352.50	621.46	44.88	146.81	117.98
31 Mar 2023	197.82	489.36	30.93	102.11	8.26
31 Mar 2022	145.62	297.88	12.17	72.40	86.06

Financial Analysis:

Key Observations:

• Revenue Growth: The company has consistently increased its revenue over the past three years, indicating strong growth and market penetration.
• Profitability: Profit after tax (PAT) has also grown steadily, suggesting improved operational efficiency and cost management.
• Asset Growth: The company has invested in assets, as evidenced by the significant increase in total assets over the three years.
• Net Worth and Reserves: A healthy increase in net worth and reserves suggests a strong financial position.
• Debt: Total borrowing has increased, but it remains at a manageable level.

Disclaimer: This analysis is based on limited financial data and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.  

Kross Limited IPO Valuation :

KPI	Values
ROE	30.57%
ROCE	28.15%
RoNW	30.57%
P/BV	8.84
PAT Margin (%)	7.22

Kross Limited IPO – SWOT Analysis

Strengths

• Strong Brand: Kross Limited has a well-established brand in the Indian bicycle market.
• Product Diversification: The company offers a wide range of bicycles to cater to different customer segments.
• Distribution Network: A strong distribution network can help reach a wider customer base.
• Focus on Quality: Kross Limited is known for manufacturing quality bicycles.

Weaknesses

• Competition: The bicycle market is competitive, with both domestic and international players.
• Raw Material Costs: Fluctuations in the prices of raw materials used in bicycle manufacturing can impact profitability.
• Regulatory Changes: Changes in government policies related to transportation or taxation can affect the industry.

Opportunities

• Growing Market: The Indian bicycle market is expanding, driven by increasing health awareness and a preference for sustainable transportation.
• Product Innovation: Developing new and innovative bicycle models to attract customers.
• Export Markets: Exploring opportunities to expand into international markets.

Threats

• Economic Downturns: A slowdown in the economy can impact demand for bicycles.
• Competition from Electric Vehicles: The increasing popularity of electric bicycles can pose competition.
• Regulatory Changes: Changes in government policies related to transportation or taxation can affect the bicycle industry.

COMPETITIVE ANALYSIS: MARKET PEERS

Kross Limited operates in a competitive bicycle market in India. Understanding its key competitors is essential for assessing the company’s market position and growth potential.

Key Competitors

• Hero Cycles: One of the largest bicycle manufacturers in India, known for its affordable products.
• Bajaj Allianz: A well-established player in the bicycle market with a focus on premium bikes.
• Avon Cycles: Another major Indian bicycle manufacturer with a strong presence in the market.
• Hercules Cycles: A long-standing player in the Indian bicycle industry, known for its classic models.

Kross Limited IPO GMP

• Grey market premium as on 11-09-2024 = ₹45 / Share

Disclaimer:

• IPO Grey Market Premium (Kross Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Kross Limited IPO

🔴 Live Subscription Status 🔴

11/09/2024 5:00 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	4,166,667	0.00	0.02	23.32
Non Institutional Investors(NIIs)	3,125,000	0.64	2.87	22.21
Retail Individual Investors(RIIs)	7,291,666	1.62	3.87	10.60
Employees	–	–	–	–
Total	14,583,333	0.95	2.56	16.72

FINAL TAKEAWAY

✅ May Apply

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