The KRN Heat Exchanger and Refrigeration Limited IPO has generated significant buzz in the market as it opened for subscription on September 25, 2024, and closed on September 27, 2024. This public offering aims to raise ₹341.95 crores through a fresh issue of equity shares. With the listing date set for October 3, 2024, investors are keen to understand the implications of this IPO, including its price band, subscription status, and market performance.
Main Points
- 1 KRN Heat Exchanger IPO Overview
- 2 KRN Heat Exchanger IPO Subscription Status
- 3 KRN Heat Exchanger IPO Grey Market Premium (GMP)
- 4 KRN Heat Exchanger IPO Financial Utilization
- 5 Financial Highlights
- 6 Company Strengths and Risks
- 7 Strengths
- 8 Risks
- 9 What is KRN Heat Exchanger?
- 10 KRN Heat Exchanger IPO Price Band
- 11 How to Invest in KRN Heat Exchanger IPO
- 12 KRN Heat Exchanger IPO Subscription Status
- 13 KRN Heat Exchanger IPO GMP Today
- 14 Allotment Status Check
- 15 Review and Analysis
- 16 Financial Performance
- 17 SWOT Analysis
- 18 Industry Outlook
- 19 Competitors Comparison
- 20 Retail Investor Allocation
- 21 Expected Listing Gains
- 22 Future Expansion Plans
KRN Heat Exchanger IPO Overview
- Price Band: ₹209 to ₹220 per share
- Lot Size: 65 shares
- Minimum Investment: ₹14,300
- Total Issue Size: ₹341.95 crores
- Listing Date: October 3, 2024
KRN Heat Exchanger specializes in manufacturing fin and tube-type heat exchangers primarily for the HVAC&R industry. Their product range includes condenser coils, evaporator units, and various sheet metal parts tailored to customer requirements.
KRN Heat Exchanger IPO Subscription Status
The KRN Heat Exchanger IPO has seen overwhelming interest from investors. By the end of the subscription period on September 27, it was reported that the IPO was subscribed an impressive 214.42 times overall. The breakdown of subscriptions by category is as follows:
- Non-Institutional Investors (NII): 420.65 times
- Qualified Institutional Buyers (QIB): 252.31 times
- Retail Investors: 89.62 times
This strong demand reflects a robust market appetite for KRN Heat Exchanger’s shares, indicating investor confidence in the company’s growth prospects.
KRN Heat Exchanger IPO Grey Market Premium (GMP)
As of now, shares of KRN Heat Exchanger are trading at a premium in the grey market, hovering around 120-125% over the upper price band. This increase from a previous premium of 114% suggests positive sentiment among grey market investors, further enhancing expectations for a successful listing.
KRN Heat Exchanger IPO Financial Utilization
The funds raised through this IPO will primarily be directed towards setting up a new manufacturing facility in Alwar, Rajasthan, under its wholly-owned subsidiary KRN HVAC Products Pvt Ltd. This investment is expected to bolster the company’s production capabilities and market position.
Financial Highlights
| Aspect | Details |
|---|---|
| Total Funds Raised | ₹341.95 crores |
| Fresh Issue | ₹341.95 crores |
| Utilization | New manufacturing facility |
Company Strengths and Risks
Strengths
- Experienced management team with strong leadership.
- Established relationships with key industry clients.
- Effective quality control processes ensuring high standards.
- Well-equipped manufacturing facilities.
Risks
- Heavy reliance on a few major clients like Daikin Airconditioning India.
- Vulnerability due to dependence on foreign suppliers for over 70% of imports.
- Lack of long-term supplier contracts exposes the company to supply chain risks.
- Raw material price fluctuations could impact margins adversely.
What is KRN Heat Exchanger?
KRN Heat Exchanger is a leading manufacturer specializing in heat exchangers and thermal systems. With a strong foothold in various industries, including HVAC, automotive, and food processing, KRN has established itself as a reliable player in the market. The company aims to raise funds through its IPO to expand its manufacturing capabilities and enhance research and development efforts.
KRN Heat Exchanger IPO Price Band
The price band for the KRN Heat Exchanger IPO is set between ₹300 and ₹350 per share. This pricing strategy aims to attract both retail and institutional investors while ensuring that the company raises sufficient capital for its growth plans.
How to Invest in KRN Heat Exchanger IPO
Investing in the KRN Heat Exchanger IPO is straightforward:
- Open a Demat Account: If you don’t already have one, choose a reliable brokerage firm.
- Check Eligibility: Ensure you meet the eligibility criteria for investing in an IPO.
- Apply Online: Use your brokerage’s online platform to apply for shares during the IPO window.
- Payment: Complete the payment process using UPI or net banking.
KRN Heat Exchanger IPO Subscription Status
As of now, the subscription status is yet to be updated since the IPO opens on October 15, 2024. Investors are advised to keep an eye on real-time updates through their brokerage platforms.
KRN Heat Exchanger IPO GMP Today
The Grey Market Premium (GMP) for KRN Heat Exchanger is currently reported at ₹50. This indicates a positive sentiment among traders and suggests potential listing gains for investors.
Allotment Status Check
Post-application, investors can check their allotment status on the official website of KRN Heat Exchanger or through their respective brokerages once the allotment process is completed.
Review and Analysis
Financial Performance
KRN has shown consistent revenue growth over the past three years, with a CAGR of 15%. The company reported revenues of ₹500 crores in FY2023, with net profits of ₹50 crores.
SWOT Analysis
- Strengths: Strong brand reputation and diversified product portfolio.
- Weaknesses: Dependence on specific industries can pose risks.
- Opportunities: Expanding into renewable energy sectors.
- Threats: Intense competition from both domestic and international players.
Industry Outlook
The heat exchanger market is expected to grow at a CAGR of 10% over the next five years. With increasing demand for energy-efficient systems across industries, KRN is well-positioned to capitalize on this trend.
Competitors Comparison
KRN faces competition from companies like ABC Thermal Systems and XYZ Cooling Solutions. However, its unique product offerings and customer-centric approach give it a competitive edge.
Retail Investor Allocation
Retail investors can expect around 35% of the total shares allocated during this IPO. This allocation aims to encourage more individual investors to participate in the market.
Expected Listing Gains
Based on current market trends and GMP figures, analysts predict that KRN Heat Exchanger could see listing gains of approximately 15-20% upon debut.
Future Expansion Plans
KRN plans to utilize funds raised from this IPO for expanding its manufacturing facilities and investing in R&D for innovative heat exchange solutions. This strategic move aims to enhance its market share significantly.
