KRN Heat Exchanger IPO GMP zooms 108% on opening day: should you subscribe?

KRN Heat Exchanger IPO GMP: Unlisted shares of KRN Heat Exchanger and Refrigeration are sizzling in the grey markets ahead of its initial public offering (IPO) launch on Wednesday, reflecting overwhelmingly positive market sentiment among investors. According to sources monitoring grey market activity, KRN Heat Exchanger's shares are commanding a premium of Rs 239, which translates to a GMP of 108 per cent, against the upper end of the IPO price of Rs 220.

The company aims to raise Rs 341.95 crores through a fresh issue of 15,543,000 shares. KRN Heat Exchanger has announced that it has already raised Rs 100.10 crore from anchor investors for the bidding concluded on September 24, 2024. 

 

KRN Heat Exchanger IPO is available at a price band of Rs 209-220, and a lot size of 65 shares. Accordingly, investors can bid for a minimum of 65 shares and in multiples thereof. A retail investor would require a minimum amount of Rs 14,300 to bid for the KRN Heat Exchanger IPO.

KRN Heat Exchanger intends to utilise the net proceeds from the IPO to invest in the wholly owned subsidiary, KRN HVAC Products, for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan. The company will use the remaining amount for general corporate purposes.

The bidding will conclude on Friday, September 27, 2024. Following the closure of the subscription window of KRN Heat Exchanger, the basis of allotment is likely to be finalised 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 are expected to 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 also succeeded in garnering favorable responses from brokerages, including Reliance Securities ,and Swastika Investmart, who have shared positive reviews about its IPO.

Should you Subscribe to the KRN Heat Exchanger IPO?

Reliance Securities - Subscribe

Analysts at Reliance Securities have recommended investors to subscribe to the public issue of KRN Heat Exchanger. According to the analysts, KRN has established itself as one of the top players in fin and tube-type heat exchangers for the HVAC&R industry using non-ferrous metals like copper and aluminium. KRN, known for quality and innovation, partners with leading industry players like Daikin, Schneider Electric, and Blue Star, and is strategically expanding its global reach and enhancing operational efficiency.

“Being a first-generation entrepreneur with over 19 years of experience in manufacturing heat exchangers and refrigeration units has moved KRN from a single product to a multi-product company with long-standing business relationships with leading clientele and multi-fold expansion in revenues in the coming years, offering strong growth ahead with consistent profitability,” said Reliance Securities.

Swastika Investmart - Subscribe for listing gain & long-term

Swastika Investmart also remains bullish on the public issue of KRN Heat Exchanger and has recommended investors subscribe to this IPO for listing gain as well as for the long term. In its report, it highlighted that the company is an industry leader with international quality standards and enjoys strong relationships with leading clients. It has shown steady growth in both revenue and profitability.

According to Swastika Investmart, the IPO’s valuation is considered fair, although there is no listed peer for comparison. “Given its strong fundamentals and potential for listing gains, investors may consider subscribing to this IPO for listing gain as well as for the long term,” said the brokerage.

About KRN Heat Exchanger

KRN Heat Exchanger and Refrigeration Limited (KRN) specialises in manufacturing fin and tube-type heat exchangers for the heat ventilation air conditioning and refrigeration (HVAC&R) industry. Their products are primarily made from non-ferrous metals such as copper and aluminium. KRN customises heat exchangers in various shapes and sizes to meet customer requirements and market demand, with diameters ranging from 5 mm to 15.8 mm. The product range includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils, and sheet metal parts for various cooling applications.