The initial public offering (IPO) of Kross Ltd., the Jamshedpur-based auto parts manufacturer, was subscribed 16.20 times on the final day of bidding on Wednesday, led by strong demand from non-institutional investors (NIIs) and qualified institutional buyers (QIBs).

At 4 pm, the issue attracted bids for 24.86 crore shares, or 16.20 times against the issue size of 1.53 crore shares. The retail portion was subscribed 9.66 times, while non-institutional investors subscribed 21.95 times. The qualified institutional buyers’ allocation was booked 23.32 times.

In the unlisted market, Kross’ shares are trading at a premium of ₹50, translating to a 21% premium over the issue price.

The IPO, which opened for subscription on September 9, concluded on September 11. Through the issue, the company plans to raise about ₹500 crore.

Ahead of its IPO opening, Kross Ltd. mobilised ₹150 crore from anchor investors.

Marquee anchor investors who participated in the anchor round include EastSpring Investments, Matthews Asia Funds, LIC Mutual Fund (MF), ICICI Prudential MF, Axis MF, Kotak Mahindra MF, Invesco India, Edelweiss MF, Motilal Oswal MF, among others.

The company has a fixed price band of ₹228-240 per share, where investors can bid for 62 equity shares in one lot and in multiples thereof.

The offer included a combination of a fresh issue of equity shares worth ₹250 crore and an Offer for Sale (OFS) aggregating up to ₹250 crore by the promoters.

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 proposes to utilise the net proceeds towards funding capital expenditure requirements for the purchase of machinery and equipment, repayment of debt, meeting working capital requirements and other general corporate purposes.

Founded in 1991, Kross is a diversified player focused on manufacturing and supply of trailer axle and suspension assembly and a wide range of forged and precision machined high-performance safety critical parts for medium and heavy commercial vehicles and farm equipment segments.

The company, which counts Ashok Leyland and Tata International DLT among its key clients, serves a diverse customer base.

Kross’ revenue, EBITDA, and profit after tax has grown at a CAGR of 44.4%, 65.5%, and 91.8%, respectively, over FY22-24.

Equirus Capital is the book-running lead manager for the issue while Kfin Technologies Limited is the registrar.

The allotment for the Kross IPO is expected to be finalised on September 12. The equity shares are proposed to be listed on the BSE and the NSE with tentative listing date fixed as September 16, 2024.