KRN Heat Exchanger IPO Opens Today, September 25, 2024

25 Sep 2024 , 12:44 PM

The IPO of KRN Heat Exchanger and Refrigeration received an overwhelming response from investors in the first hour of bidding on September 25, with full subscription achieved within 12 minutes.

KRN Heat Exchanger, based in Rajasthan, is offering shares in a price band of ₹209-220, with a minimum bid size of 65 shares. The company aims to raise ₹341.95 Crore through a fresh issue of 1,55,43,000 equity shares.

By 12:34 pm on September 25, the Non-institutional investors (NIIs) subscribed to 18.55 times their allocation, and retail investors subscribed to 10.69 times. Qualified institutional buyers (QIBs) subscribed to 0.01 times. The IPO bidding will continue until Friday, September 27.

KRN Heat Exchanger manufactures fin and tube-type heat exchangers for the HVAC&R industry, using copper and aluminum. Their products include water coils, condenser coils, and evaporator coils used in heating, ventilation, air conditioning, and refrigeration.

The company plans to significantly increase its production capacity, which will drive revenue growth from both existing and new products, according to Anand Rathi Research.

KRN’s legacy and expansion into international markets, coupled with growing HVAC demand, are expected to support its long-term revenue and profit margins. Analysts recommend a “subscribe for long term” rating for this IPO.

Ahead of the IPO, KRN raised ₹100.1 Crore from 10 anchor investors by allotting 45.5 lakh shares at ₹220 each. The IPO allocates 50% of the net offer to QIBs, 35% to retail investors, and 15% to NIIs.

The company has established itself as a leading manufacturer of heat exchangers by focusing on quality and customization. Exports and large orders have contributed to profitability and financial growth.

KRN plans to expand production sixfold by setting up a new facility that will manufacture bar and plate heat exchangers, oil cooling units, and roll band evaporators, opening up new markets and industries.

Holani Consultants is the sole book-running lead manager for the IPO, and Bigshare Services is the registrar. KRN shares are expected to list on BSE and NSE on October 3, 2024.