Cross IPO Listing: The Rs 500 crore public issue of Cross Limited, a company manufacturing components for vehicles, closed after being subscribed 17.66 times. It opened on September 9 and closed on September 11. The portion reserved for qualified institutional buyers was filled 24.55 times, the portion reserved for non-institutional investors was filled 23.40 times and the portion reserved for retail investors was filled 11.26 times.
Now the company’s shares are going to be listed on BSE and NSE on September 16. The shares are expected to be listed with a gain. In the gray market, the shares are trading at a premium of Rs 24.50 or 10.21 percent over the IPO’s upper price band of Rs 240. On this basis, the shares of Cross Limited can be listed at a price of more than Rs 264. The gray market is an unauthorized market where the shares of a company trade till its listing.
The price band for the IPO was Rs 228-240 and new shares worth Rs 250 crore were issued. There was also an offer for sale of Rs 250 crore. The promoters of the company are Sudhir Rai and Anita Rai.
What is included in Cross’s product
Kross Limited was formerly known as Kross Manufacturers (India) Private Limited. It manufactures and supplies high performance forged and precision machined safety critical parts for medium and heavy duty commercial vehicles (M&HCV) and agricultural equipment including trailer axles, suspensions. The company’s product portfolio includes a wide range of tractor components such as axle shafts, companion flanges, anti-roll bars and stabilizer bar assemblies, suspension linkages, differential spiders, bevel gears, planet carriers, inter-axle kits, rear-end spindles, pole wheels, and hydraulic lift arrangements, power take-off shafts, front axle spindles.
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How will the IPO money be used
The money raised by issuing new shares in the IPO will be used to meet capital expenditure requirements for purchasing machinery and equipment, repaying borrowings in full or in part, funding working capital requirements and for general corporate purposes. The company had a loan of Rs 128.63 crore (excluding vehicle loans) as of June 2024.
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