The much-awaited KRN Heat Exchanger IPO opened for subscription on September 25, 2024, aiming to raise approximately ₹342 crore. The IPO consists of a fresh issue of 1.55 crore shares, with no offer-for-sale (OFS) component. The shares are expected to be listed on both BSE and NSE by October 3, 2024.
In this article, we provide a comprehensive overview of the IPO, including the Grey Market Premium (GMP), subscription status, and key details for investors.
Key Details of KRN Heat Exchanger IPO
| IPO Price Band | ₹209 to ₹220 per share |
| IPO Size | ₹342 crore |
| Subscription Period | September 25, 2024, to September 27, 2024 |
| Lot Size | Minimum 65 shares (₹14,300 investment for one lot) |
| Allotment Date | September 30, 2024 |
| Listing Date | October 3, 2024 (tentative) |
KRN Heat Exchanger is a leading manufacturer of heat exchanger tubes used in the HVAC (Heat, Ventilation, Air Conditioning) and refrigeration industries. The funds raised will be utilized to invest in KRN HVAC Products Private Ltd, for setting up a new manufacturing facility in Neemrana, Rajasthan, as well as for general corporate purposes.
Subscription Status on Day 1
According to data from BSE, on the first day of subscription, the KRN Heat Exchanger IPO had an overall subscription of 0.02 times as of 10:03 a.m., with the retail investor portion subscribed 0.03 times.
The non-institutional investors (NIIs) category saw a similar subscription level of 0.03 times, while the Qualified Institutional Buyers (QIBs) had not yet subscribed to the issue.
MUST READ: KRN Heat Exchanger IPO Opens: Subscription Guide & Analyst View
Grey Market Premium (GMP) and Expected Listing Price
As of the first day of the IPO, KRN Heat Exchanger shares are trading at a GMP of ₹239. Based on this premium, the stock is expected to list at around ₹459 per share, which represents a 108.64% gain over the upper price band of ₹220.
Though GMP offers an early indicator of investor sentiment, it is important to remember that it is speculative and not a guarantee of actual listing prices.
Financial Performance
KRN Heat Exchanger has shown impressive growth over the last few years:
- FY22 Profit: ₹11 crore
- FY23 Profit: ₹32 crore
- FY24 Profit: ₹39 crore
With a strong foothold in the HVAC and refrigeration industries, the company is expected to leverage its new manufacturing facility to boost production and profitability in the coming years.
Objectives of the IPO
The net proceeds from the IPO will be used for:
- Investment in KRN HVAC Products Pvt Ltd: A new manufacturing unit will be established at Neemrana, Rajasthan, to expand the company’s production capacity.
- General Corporate Purposes: The remaining funds will be used for routine corporate expenditures and capital requirements.
Key Takeaways for Investors
- Subscription: Investors can subscribe to KRN Heat Exchanger IPO until September 27, 2024.
- Price Band: The price band has been set between ₹209 to ₹220 per share, with a minimum investment of ₹14,300 (65 shares).
- Potential Listing Gains: The GMP of ₹239 suggests a strong demand for the stock, indicating a potential 108% listing gain.
Conclusion
The KRN Heat Exchanger IPO offers investors a chance to participate in a company with a strong market presence and promising growth prospects. With an impressive GMP, it appears that the IPO will likely generate significant interest among both retail and institutional investors. However, investors should be mindful of market risks and make informed decisions.
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Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Always do your own research before making any investment decisions. The author and publisher do not hold any responsibility for financial losses or gains incurred from using this information. Past performance does not guarantee future results.
