KRN Heat Exchanger and Refrigeration Ltd launched its Initial Public Offering (IPO), aiming to raise ₹341.95 crore. This IPO is significant for investors looking to enter the heating, ventilation, air conditioning, and refrigeration (HVACR) market. The company is offering shares at a price band of ₹209 to ₹220 per share, with a minimum lot size of 65 shares. Investors need to make a minimum investment of ₹14,300 to participate in this offering.
Main Points
KRN Heat Exchanger IPO Overview
- Open Date: September 25, 2024
- Close Date: September 27, 2024
- Lot Size: 65 shares
- Price Band: ₹209 – ₹220
- Total Issue Size: ₹341.95 crore
- Listing Date: October 3, 2024
KRN Heat Exchanger is primarily known for manufacturing fin and tube-type heat exchangers. Their products include copper and aluminium fins, copper tubes, water coils, condenser coils, and evaporator coils. These components are essential in various applications across domestic, commercial, and industrial sectors.
KRN Heat Exchanger IPO Subscription Status
As of the first day of bidding, the IPO has shown strong demand. Reports indicate that it was oversubscribed within minutes of opening. By mid-morning on September 25, the IPO had been subscribed approximately 1.71 times. The breakdown of subscriptions includes:
- Qualified Institutional Buyers (QIBs): Not yet subscribed
- Non-Institutional Investors (NIIs): Subscribed 3.69 times
- Retail Investors (RIIs): Subscribed 1.82 times
This enthusiastic response from investors reflects confidence in KRN Heat Exchanger’s business model and growth potential.
KRN Heat Exchanger IPO Grey Market Premium (GMP)
The grey market premium for KRN Heat Exchanger shares has been notably high. As of the morning of September 25, the GMP was reported at ₹239, suggesting a potential listing price of around ₹459 per share if this trend continues. This represents an impressive gain of about 108% over the upper end of the IPO price range.
KRN Heat Exchanger IPO Use of Proceeds
The funds raised through this IPO will be allocated primarily towards establishing a new manufacturing facility for KRN HVAC Products, a wholly-owned subsidiary located in Neemrana, Rajasthan. This expansion aims to enhance production capacity and meet growing market demands.
KRN Heat Exchanger IPO Market Sentiment and Analyst Opinions
Market analysts have provided mixed yet generally positive reviews regarding the KRN Heat Exchanger IPO. Some brokerage firms recommend subscribing for long-term gains based on the company’s robust financial performance over recent years. For instance:
- SBI Securities has rated the IPO as a “subscribe for the long term,” citing a strong growth trajectory with revenue increasing at a CAGR of 25% over the past three years.
- Swastika Investment also suggests subscribing for listing gains due to KRN’s industry leadership and established relationships with major clients like Daikin and Blue Star.
The company has demonstrated significant growth in revenue and profitability, making it an attractive option for investors looking for exposure in the HVACR sector.
Company Background
KRN Heat Exchanger operates from its manufacturing facility in Neemrana. The facility spans an area of approximately 7,800 square meters and is equipped with advanced machinery for producing heat exchanger components. The company prides itself on maintaining high-quality standards and has established long-term partnerships with leading industry players.
