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The initial public offering (IPO) of Kross Ltd, a prominent manufacturer of auto parts, has witnessed overwhelming investor interest, closing with a remarkable 17.45 times subscription on September 11th, 2023. The IPO, aimed at raising Rs 500 crore, set a price band of Rs 228 to Rs 240 per share for the public issue. The robust demand for the IPO was evident across all investor categories, with the non-institutional investor category attracting 23.32 times subscription, retail individual investors (RIIs) garnering 10.87 times subscription, and qualified institutional buyers (QIBs) seeing a 24.55 times subscription. This strong response reflects investors' confidence in Kross's potential for growth and profitability.
The grey market, which reflects anticipation and sentiment surrounding upcoming IPOs, indicates a positive outlook for Kross's listing. Unlisted shares of Kross Ltd are currently trading at a Rs 50 premium over the issue price, representing a 20.83 per cent expected listing gain. This ‘grey market premium’ signifies investors' willingness to pay a price higher than the issue price, suggesting a potential for strong demand and share price appreciation upon listing.
The positive sentiment towards Kross's IPO is further reinforced by analysts' recommendations. Most brokerage firms have advised investors to ‘subscribe’ to the IPO, citing the company's robust financial performance and growth prospects. SBI Securities, in its IPO note, attributes a ‘subscribe for long-term’ rating to the issue, highlighting Kross's healthy growth track record and valuation. Similarly, Deven Choksey Research has assigned a ‘subscribe’ rating, emphasizing Kross's strong financial performance, commitment to innovation, and competitive positioning within the market. The company's anticipated adjusted PE multiple of 34x at the upper price band, coupled with high return ratios compared to its peers, further strengthens the positive outlook for the IPO.
Source: Kross IPO Receives 17.45x Subscription on Day 3, Check GMP Today