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The initial public offering (IPO) of Kross Ltd, an automobile component manufacturer, has garnered significant interest from investors, with the IPO allotment now finalized. As investors eagerly await the listing next week, attention is turning towards the potential listing price and the prevailing grey market premium (GMP).
The Kross IPO is scheduled to list on September 16th, with the company's equity shares set to be traded on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). Investors who secured IPO share allotments are keen to understand the estimated listing price, which is often gauged by the GMP, reflecting the anticipated difference between the issue price and the market price.
Current trends in the grey market suggest a positive outlook for the Kross IPO. The grey market premium (GMP) for Kross shares has settled at ₹38 per share, indicating that the shares are trading at a premium of ₹38 in the unofficial grey market compared to the IPO price. This premium, coupled with the IPO price band of ₹228 to ₹240 per share, suggests an estimated listing price of ₹278 per share, representing a 16% premium to the issue price.
The bidding for the Kross IPO commenced on September 9th and concluded on September 11th. The IPO allotment was finalized on September 12th, setting the stage for the upcoming listing on September 16th. The company successfully raised ₹500 crore at the upper end of the price band, through a combination of a fresh issue of 1.04 crore equity shares worth ₹250 crore and an offer-for-sale (OFS) component of an equivalent amount.
The Kross IPO garnered a strong response from investors, with the issue being subscribed 16.81 times overall. The retail category was subscribed 10.76 times, while the Non-Institutional Investors (NII) segment witnessed a subscription of 22.24 times, and the Qualified Institutional Buyers (QIBs) portion received a subscription of 23.32 times. This robust demand underscores investor confidence in Kross's future prospects and the potential for growth in the automobile component sector.
Source: Kross IPO: What GMP signals as focus shifts on share listing date