KRN Heat Exchanger IPO Allotment Finalization and Market Expectations

The allotment of shares for KRN Heat Exchanger and Refrigeration’s initial public offering (IPO) is anticipated to be finalized today. This announcement follows the closure of the IPO on Friday, September 27, 2024. The offering saw significant interest from investors, being oversubscribed by an impressive 214.42 times.

Data from the Bombay Stock Exchange (BSE) indicates that the IPO received bids for 2,357,139,005 shares, vastly outstripping the 109,930,000 shares made available. Among the various investor categories, Non-Institutional Investors led the oversubscription with 431.63 times, followed by Qualified Institutional Buyers at 253.04 times, and Retail Individual Investors at 98.29 times.

Once the allotment process is completed, investors can verify their share allocation status through official websites such as the BSE, National Stock Exchange (NSE), or Bigshare Services, who are serving as the registrars for this issue. Links to these resources include BSE’s investor application check page, NSE’s IPO login, and Bigshare Services’ IPO status page.

The grey market premium (GMP) for KRN Heat Exchanger’s unlisted shares remains robust but has witnessed a slight decline. On Monday, these shares were priced at a premium of Rs 270, which is 122.73 percent above the upper IPO price of Rs 220. This is a drop from Rs 276 noted at the open of the subscription period on September 27.

As per current market speculations, KRN Heat Exchanger shares are projected to list on the stock exchanges on Thursday, October 3, 2024. Should the grey market premium persist, the shares might debut at approximately Rs 490, potentially delivering investors who were allotted shares more than double returns on their investment.

The IPO comprised a fresh issue of 15,543,000 shares within a price band ranging from Rs 209 to Rs 220. It went live for subscription from September 25, 2024, till September 27, 2024. The company plans to use the proceeds from the IPO to finance its wholly-owned subsidiary, KRN HVAC Products Pvt Ltd, by establishing a new manufacturing facility in Neemrana, Alwar, Rajasthan, as well as for general corporate purposes.

KRN Heat Exchanger and Refrigeration is a prominent manufacturer within the HVAC&R industry, specializing in products such as fin and tube heat exchangers, water coils, condenser coils, evaporator coils, and heat exchanger tubes of various dimensions.