Kross Limited IPO Open For Subscription, Check GMP Before Investing

The maiden listing comprises a fresh issue of equity worth Rs 250 crore and an offer-for-sale coming up to Rs 250 crore. The price band of the IPO has been set at Rs 228 to Rs 240 per share

The company is trading in the grey market at a premium of 19 per cent, indicating average returns for the investors after listing.

Source : Vested Finance

Kross Limited opens its initial public offering (IPO) for subscription on Monday, September 9, 2024. The Rs 500 crore IPO will stop accepting bids for the issue on September 11, 2024.

The maiden listing comprises a fresh issue of equity worth Rs 250 crore and an offer-for-sale coming up to Rs 250 crore. The price band of the IPO has been set at Rs 228 to Rs 240 per share, with a face value of Rs 5 apiece.

The final allotment for the maiden issue will be revealed on September 12 and the company will list its shares on the stock exchanges on September 16, 2024. Nearly 50 per cent of the issue has been set aside for QIB investors, while around 35 per cent has been reserved for retail investors. Non-institutional investors will be allowed to bid for 15 per cent of the overall issue.

Grey Market Premium

The company is trading in the grey market at a premium of 19 per cent, indicating average returns for the investors after listing. The grey market is an unofficial market that runs parallel to the stock market and allows investors a space to trade shares or applications before they are officially launched on the exchanges. The Grey Market Premium (GMP) is used to understand how investors are reacting towards the IPO.

A high GMP means that investors are keen on the firm and expect it to perform well in the stock market after its public debut. However, a low GMP indicates that investors are not very optimistic about the company and expect its shares to not fare well after the listing. However, the grey market is an unofficial market and it should always be looked at with caution. 

Firm's Performance

In terms of financial performance, Kross Limited reported a profit after tax of Rs 44.88 crore in the 2023-24 fiscal year, against Rs 30.93 crore logged in the preceding fiscal year. The revenue of the firm touched Rs 621.46 crore in FY24, in comparison to Rs 489.36 crore reported in the 2022-23 fiscal year (FY23).