KRN Heat Exchanger IPO closes today: Should you invest amid 124% GMP surge?

KRN Heat Exchanger IPO has so far garnered a solid response from investors, receiving bids for 63,91,84,780 shares against 1,09,93,000 shares offered, resulting in an oversubscription of 58.14 times

KRN Heat Exchanger IPO GMP: The grey market premium (GMP) for the initial public offering (IPO) of KRN Heat Exchanger and Refrigeration continues to remain intact above 100 per cent, indicating overwhelming demand on the last day of subscription. KRN Heat Exchanger unlisted shares were trading at a premium of Rs 274, which translates to a GMP of 124.55 per cent, as per sources tracking grey market activities.

KRN Heat Exchanger IPO subscription status

KRN Heat Exchanger IPO, which opened for public subscription on Wednesday, September 25, 2024, will conclude today. The public issue has so far garnered a solid response from investors, receiving bids for 63,91,84,780 shares against 1,09,93,000 shares offered, resulting in an oversubscription of 58.14 times by September 26, 2024.

 

KRN Heat Exchanger IPO witnessed the highest subscription in the quota reserved for Non-Institutional Investors category, getting oversubscribed by 135.82 times. This was followed by Retail Individual Investors (RIIs), who bid for 55.50 times, and Qualified Institutional Buyers (QIBs), who bid for 3.16 times.

KRN Heat Exchanger IPO details

KRN Heat Exchanger is available at a price band of Rs 209-220, with a lot size of 65 shares. Investors can bid for a minimum of 65 shares and in multiples thereof.

KRN Heat Exchanger proposes to utilie the net proceeds from the public issue to invest in the wholly-owned subsidiary, KRN HVAC Products, for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan.

For the KRN Heat Exchanger IPO, the basis of allotment is expected to be finalized on Monday, September 30, 2024, and subsequently, the company’s shares will be credited into demat accounts on Tuesday, October 1, 2024. KRN Heat Exchanger shares will tentatively make their debut on the bourses on Thursday, October 3, 2024, with listing at BSE and NSE.

KRN Heat Exchanger IPO review

KRN Heat Exchanger has succeeded in garnering favorable responses from brokerages, including Deven Choksey Research, Reliance Securities, and Swastika Investmart, who have shared positive reviews about its IPO.

Should you Subscribe to KRN Heat Exchanger IPO?

Deven Choksey Research - Subscribe

Analysts at Deven Choksey Research remain optimistic about KRN Heat Exchanger IPO and have recommended investors to subscribe to the public issue. The analysts believe that KRN Heat Exchanger is strategically poised for sustained growth within the HVAC&R industry, leveraging its comprehensive manufacturing capabilities in heat exchangers, condenser coils, evaporator units, and related components. According to the analysts, the company has consistently demonstrated strong financial performance, reporting revenues of Rs 308.30 crore in FY 2024, with a substantial 96.66 percent of revenue derived from its evaporator and condenser coils segment.

“Based on current growth metrics and the strategic initiatives outlined, KRN is positioned for a favorable valuation. The IPO is pegged at a PE multiple of 35x. In light of the impressive growth prospects, strong financials, and strategic expansion initiatives, we assign a ‘Subscribe’ rating for KRN Heat Exchanger and Refrigeration Limited’s IPO,” said Deven Choksey Research. READ MORE

About KRN Heat Exchanger and Refrigeration

KRN Heat Exchanger and Refrigeration, established in 2017, is a company based in Bhiwadi, Alwar, Rajasthan. The company specializes in manufacturing fin and tube-type heat exchangers, catering primarily to the HVAC&R (Heat Ventilation Air Conditioning and Refrigeration) industry. KRN Heat Exchanger products, which include condenser coils, evaporator units, and fluid coils, are made from non-ferrous metals like copper and aluminum.