The KRN Heat Exchangers IPO has grabbed the attention of both retail and non-institutional investors, showing remarkable interest on the second day of its subscription. By the end of Day 2, the IPO has already been subscribed 30 times in total, with strong buying interest from both categories.
The initial public offering, which opened on September 25, 2024, aims to raise ₹341.95 crore through a fresh issue of 1.55 crore shares. The IPO concludes on September 27, 2024, and the shares are expected to list on October 3, 2024.
KRN Heat Exchangers IPO Subscription Status
On the second day of subscription, the KRN Heat Exchangers IPO saw significant demand across various categories:
- Retail Investors: Subscribed 31.11 times
- Non-Institutional Investors (NII): Subscribed 64.60 times
- Qualified Institutional Buyers (QIBs): Subscribed 1.46 times
This level of oversubscription highlights the strong market interest in KRN Heat Exchangers, which is one of the leading manufacturers of heat exchanger tubes for the HVAC (heat, ventilation, air conditioning) and refrigeration industries.
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Key Details of the KRN Heat Exchangers IPO
Here are the essential details you need to know about this IPO:
- GMP (Grey Market Premium): The current grey market premium for KRN Heat Exchangers IPO stands at ₹251, up from ₹239 on Wednesday. This positive momentum in the grey market suggests that the stock could potentially list at a premium of around 114.09%, with a possible listing price of ₹471.
- Price Band: The price band for the IPO has been set between ₹209 to ₹220 per share.
- Subscription Period: The IPO opened for public subscription on September 25 and will close on September 27.
- Issue Size: The IPO is a fresh issue of 1,55,23,000 shares, with the company aiming to raise around ₹342 crore.
- Lot Size: The minimum lot size is 65 shares, meaning the minimum investment for retail investors is ₹14,300. The maximum lot size for retail investors is 13.
- Allotment Date: The company is expected to finalize the share allotment on September 30, 2024.
- Listing Date: The shares are expected to be listed on BSE and NSE on October 3, 2024.
- Registrar: The official registrar for this IPO is Bigshare Services Private Limited.
- Purpose of the Issue: The proceeds from the IPO will be used to fund the company’s wholly-owned subsidiary, KRN HVAC Products Private Limited, which plans to set up a new manufacturing facility in Neemrana, Rajasthan. A portion of the proceeds will also be used for general corporate purposes.
- Company Overview: KRN Heat Exchangers is a prominent manufacturer of heat exchanger products, including fins, tubes, evaporator units, and coils. These products are used in HVAC and refrigeration applications, making the company an essential player in these growing industries.
MUST READ: KRN Heat Exchanger IPO Day 3: GMP, Subscription Status & Key Details Unveiled
Strong Financial Performance of KRN Heat Exchangers
KRN Heat Exchangers has reported solid financials in recent years, reflecting its robust business model:
- The company’s profit grew from ₹11 crore in FY22 to ₹32 crore in FY23 and further surged to ₹39 crore in FY24.
- Its focus on expanding its product line and catering to a growing customer base in the HVAC industry has led to increased revenue and profitability.
MUST READ: KRN Heat Exchanger IPO: Day 1 Subscription, GMP, and Review
Investor Interest and Market Sentiment
The strong subscription numbers are a clear indicator of the high demand for KRN Heat Exchangers shares. The company’s strategic expansion plans, combined with its growing financial strength, have generated positive sentiment in the market.
Additionally, the company’s decision to raise ₹100.10 crore from 10 anchor investors before the IPO signals confidence among institutional investors. The fact that the shares allocated to anchor investors were priced at ₹220 per share further reflects the expected demand for this stock.
What to Expect on the Listing Day
Given the current GMP and the robust subscription data, KRN Heat Exchangers shares are expected to list at a premium when they debut on the stock exchanges on October 3, 2024. Investors are hopeful for a successful listing, and experts believe that the stock could offer substantial early returns.
However, it’s important to note that while the grey market premium can provide insights into the stock’s potential performance, it’s not always an accurate predictor of actual listing prices. Therefore, investors should proceed with caution and focus on the company’s long-term growth prospects rather than short-term gains.
Conclusion
The KRN Heat Exchangers IPO is attracting significant interest from both retail and institutional investors. The company’s strong financial performance, combined with its strategic expansion into new markets, makes it a compelling investment opportunity. Investors should keep an eye on the allotment date and prepare for what could be a promising listing on October 3.
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Disclaimer
This article is intended for informational purposes only and should not be considered financial advice. Readers should conduct their own research or consult a financial advisor before making any investment decisions.