Investors who invested in Cross Limited's IPO disappointed…
Shares of Cross Limited, a company that makes vehicle parts, were listed on the market on monday after its IPO last week. The company's shares started flat. That is, the IPO investors could not earn anything on the listing of the shares and were disappointed.
IPO investors did not earn
Cross Limited's share was listed on BSE and NSE this morning at a price of Rs 240. In the IPO, the company had fixed a price band of Rs 228 to Rs 240 and one lot of it included 62 shares. In this way, Rs 14,880 had to be spent to buy one lot of Cross Limited's IPO. Since the listing has been done at a price equal to the upper price band, investors have not been able to earn anything. On the other hand, Bajaj Housing's shares have been listed with a 114 percent premium.
Cross Limited manufactures such parts
Cross Limited's business is mainly focused on the manufacturing and supply of trailer axles and suspension assemblies. The company manufactures a variety of forged and precision machined high-performance safety critical parts for medium and heavy commercial vehicles. Apart from that, the company also manufactures parts for agricultural equipment.
500 crore IPO got such response
Cross Limited's IPO opened on 9 september and remained open for subscription till 11 September. The company had come up with an IPO of Rs 500 crore, which included a fresh issue of shares worth Rs 250 crore and an offer for sale of Rs 250 crore. The IPO was subscribed 24.55 times by QIBs, 23.40 times by NIIs and 11.26 times by retail investors. In this way, the IPO was subscribed 17.66 times overall in 3 days.
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