KRN Heat Exchanger’s IPO Set to Open with High Investor Interest

The initial public offering (IPO) for KRN Heat Exchanger and Refrigeration Ltd. is poised to open on September 25, 2024. The IPO, which has been generating considerable attention from investors, is priced within the range of Rs 209 to Rs 220 per share.

According to reports from Investor Gain, the grey market premium (GMP) on this stock surged to Rs 240 as of 12:25 p.m. on Monday. This suggests an expected listing price of approximately Rs 460, should the shares open at the projected figure. This would result in a premium of 109% compared to the upper IPO price of Rs 220 per share. However, it is crucial to note that the GMP is speculative and not an official stock price estimate.

The subscription window for this IPO remains open until September 27. During this period, bids can be placed in a minimum lot size of 65 shares, with any additional bids being accepted in multiples accordingly. The bidding round for anchor investors is slated to begin a day earlier on September 24.

KRN Heat Exchanger, based in Rajasthan, aims to raise a total of Rs 341.95 crore through its primary market offering. This offering, described as a fresh issue of 1.55 crore equity shares, does not include an offer-for-sale segment. Proceeds from the IPO will primarily be directed towards investment in KRN HVAC Products, a wholly-owned subsidiary, for establishing a new manufacturing facility in Neemrana, Rajasthan, as outlined in the company’s IPO draft papers.

The IPO’s book-running lead manager is Holani Consultants. Additionally, the company has already conducted a pre-IPO placement of 4.77 lakh equity shares at Rs 200 each, amassing Rs 9.54 crore in the process.

KRN Heat Exchanger specializes in manufacturing fin and tube-type heat exchangers tailored for the air conditioning and refrigeration sectors. Its clientele includes notable companies such as Daikin Air conditioning India Pvt., Schneider Electric IT Business India Pvt., Kirloskar Chillers Pvt., Blue Star Ltd., and Climaventa Climate Technologies Pvt. The company’s manufacturing operations are consolidated at its facility located in the RIICO Industrial Area in Neemrana, Rajasthan.