Kross Ltd files DRHP with SEBI to raise ₹500 crore via IPO; check details
₹500 crore through an initial public offering (IPO). The maiden public issue of the Jamshedpur-based company comprises a fresh issue of shares worth up to ₹250 crore and an offer for sale (OFS) of shares aggregating up to ₹250 crore by promoters, according to the Draft Red Herring Prospectus (DRHP). The OFS portion consists of equity shares to the tune of up to ₹168 crore by Sudhir Rai and ₹82 crore by Anita Rai.
The company may undertake a pre-IPO placement of its securities worth up to ₹50 crore. Also Read: In total 10 mainboard IPOs in November, 8 lists with premium; Tata Tech IPO tops the list; check details If such placement is undertaken, the fresh issue size will be reduced. Equirus Capital is the book running lead manager to the issue.
The equity shares are proposed to be listed on stock exchanges BSE and the NSE. Kross Limited proposes to utilize the net proceeds of the fresh issue towards funding of capital expenditure requirements of the company towards purchase of machinery and equipment - for which it will use ₹70 crore. The company intends to utilise upto ₹90 crore for the repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed, from banks and financial institutions.
The company seeks to utlise ₹30 crore for funding working capital requirements of the company and funds will also be used for general corporate purposes. The promoters of the company are Sudhir Rai, Chairman and Managing Director; Anita Rai, Whole -Time Director; Sumeet Rai, Whole -Time Director and Kunal Rai, Chief Financial Officer. Kross Ltd - which counts Ashok Leyland and Tata International DLT Private Limited as its key clients supplies its products to a diversified client base.
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