KRN Heat Exchanger IPO: A Comprehensive Overview
KRN Heat Exchanger and Refrigeration Ltd is poised to make a significant mark in the Indian stock market with its upcoming Initial Public Offering (IPO), valued at ₹341.95 crores. This article delves into the key highlights, subscription details, and market expectations surrounding this IPO, which is set to attract a wide array of investors.
IPO Details
The KRN Heat Exchanger IPO is an entirely fresh offering of 1.55 crore shares, with a price band set between ₹209 and ₹220 per share. The bidding process commenced on September 25, 2024, and concluded on September 27, 2024. Investors can expect the allotments to be finalized on September 30, 2024, with shares scheduled to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on October 3, 2024.
Key Figures:
- Total Offering: 1.55 crore shares
- IPO Size: ₹341.95 crores
- Price Band: ₹209 – ₹220 per share
- Minimum Order: 65 shares
- Listing Date: October 3, 2024
Company Overview
KRN Heat Exchanger specializes in manufacturing fin and tube-type heat exchangers, which are integral to various applications in the Heating, Ventilation, Air Conditioning, and Refrigeration (HVAC&R) industry. The company produces heat exchangers with copper and aluminum fins, as well as copper tubes, including water coils, condenser coils, and evaporator coils. Their products cater to domestic, commercial, and industrial sectors, showcasing a diverse range of applications.
Product Range:
- Heat Exchangers: Copper and aluminum fins with copper tubes
- Coils: Water coils, condenser coils, evaporator coils
- Tube Sizes: Ranging from 5 mm to 15.88 mm in diameter
Subscription Status
The KRN Heat Exchanger IPO has garnered substantial interest from investors. As of the closing date, the IPO was subscribed 213.41 times overall, with notable interest across various categories:
- Retail Investors: 96.74 times
- Qualified Institutional Buyers (QIBs): 253.04 times
- Non-Institutional Investors (NIIs): 430.54 times
This overwhelming response indicates strong market confidence in the company’s potential.
Anchor Investors and Market Capitalization
The IPO has successfully secured ₹100.10 crores from anchor investors, reflecting robust institutional interest. The market capitalization of KRN Heat Exchanger post-IPO is estimated at ₹1,309.51 crores, underscoring its competitive position in the market.
Grey Market Premium (GMP)
As of September 29, 2024, the Grey Market Premium (GMP) for the KRN Heat Exchanger IPO stands at ₹275. This suggests an expected listing price of ₹495 per share, indicating a potential gain of 125% for investors. The GMP serves as a crucial indicator of market sentiment and demand for the IPO.
Risks and Considerations
While the IPO presents exciting opportunities, potential investors should be aware of certain risks. The company relies heavily on raw materials sourced from international vendors, including those from Malaysia, South Korea, Thailand, Vietnam, and China. Geopolitical conditions in these regions could impact supply chains and, consequently, the company’s operations.
How to Check Allotment Status
Investors can check their allotment status online by visiting the NSE website and navigating to the IPO allotment status page. They will need to log in with their credentials and enter their PAN card details along with the IPO number.
Conclusion
The KRN Heat Exchanger IPO is shaping up to be a noteworthy event in the Indian capital markets, offering investors a chance to participate in a company with a strong foothold in the HVAC&R industry. With a solid subscription response, favorable GMP, and a well-defined product range, KRN Heat Exchanger is poised for a promising debut on the stock exchanges. As the listing date approaches, market participants will be keenly watching the developments surrounding this IPO.