KRN Heat Exchanger IPO Opens for Subscription

KRN Heat Exchanger, a manufacturer of heat exchanger tubes, has opened its initial public offering (IPO) for subscription on September 25. The company aims to raise approximately Rs.342 crore through this IPO. Before the IPO, KRN Heat Exchanger raised Rs. 100.10 crore from 10 anchor investors by allocating 45.5 lakh equity shares at Rs.220 per share. The IPO will close on Friday, September 27, and consists entirely of a fresh issue of 1.55 crore shares, with no offer for sale component.

Subscription Status

As of 10:03 am on the first day of subscription, KRN Heat Exchanger's IPO had received a total subscription of 0.02 times, according to BSE data. The retail investor segment saw a subscription of 0.03 times, while non-institutional investors also subscribed at 0.03 times. The Qualified Institutional Buyers (QIB) segment had not recorded any subscriptions yet.

Key Details of KRN Heat Exchanger IPO

GMP (Grey Market Premium): The shares of KRN Heat Exchanger are trading at a premium in the grey market, with the latest GMP reported at Rs. 239. This indicates a potential listing price of Rs. 459, reflecting a premium of 108.64% on the Indian stock exchanges.

Price Band: The price band for the issue has been set between Rs. 209 and Rs. 220 per share.

IPO Dates: The IPO opened for subscription today, September 25, and will close on September 27.

Size of the IPO: The offering is a fresh issue of up to 1,55,23,000 shares with a face value of Rs. 10 each, aiming to raise nearly Rs. 342 crore.

Lot Size: The minimum application lot size is 65 shares. At the upper price band of Rs. 220, the minimum investment for retail investors is Rs.14,300. The maximum lot size for retail investors is 13.6.

Allotment Date: The share allotment is expected to be finalized on September 30. Successful applicants will have shares credited to their demat accounts by October 1, and refunds for unsuccessful applicants will also be processed on the same day.

Registrar: Bigshare Services Private Limited is the official registrar for this IPO.

Listing Information: KRN Heat Exchanger shares are tentatively expected to be listed on the BSE and NSE on October 3.

Purpose of the IPO: The funds raised will be used to invest in KRN HVAC Products Private Limited, a wholly-owned subsidiary, for setting up a new manufacturing facility in Neemrana, Alwar, Rajasthan. Some funds will also be allocated for general corporate purposes.

Company Background: KRN Heat Exchanger specializes in manufacturing heat exchangers with fins and tubes for the HVAC and refrigeration sectors. Their product range includes sheet metal components, header/copper parts, evaporator units, evaporator coils, and fluid and steam coils.

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The company reported a profit of nearly Rs.11 crore for FY22, which rose to over Rs.32 crore in FY23 and Rs.39 crore in FY24. This IPO represents an exciting opportunity for investors, reflecting the growing demand for KRN Heat Exchanger's products in the HVAC industry.