KRN Heat Exchanger IPO Allotment Expected on September 30, Listing on October 3

The initial public offering (IPO) of KRN Heat Exchanger, a manufacturer of heat exchanger tubes, has garnered significant interest from retail and non-institutional investors. The IPO opened for subscription on Wednesday, September 25, with a goal to raise approximately ₹342 crore. Prior to the public offering, the company secured ₹100.10 crore from 10 anchor investors, allocating 45.5 lakh shares at ₹220 per share. The IPO, consisting of a fresh issue of 1.55 crore shares, will remain open until Friday, September 27, with no offer for sale (OFS) component.

KRN Heat Exchanger IPO Subscription Update

According to data from the BSE, by 10:10 a.m. on Thursday, the second day of the offering, the IPO was subscribed 30 times overall. The retail investors’ portion was subscribed 31.11 times, while non-institutional investors showed even stronger demand with a 64.60 times subscription rate. Meanwhile, the Qualified Institutional Buyers (QIB) category had seen a 1.46 times subscription. On the first day, the overall subscription had reached 24.09 times.

Key Details of KRN Heat Exchanger IPO:

1. Grey Market Premium (GMP): The IPO has seen high demand in the grey market, with the GMP climbing to ₹251 from ₹239 on Wednesday. Based on the current trends, KRN Heat Exchanger’s shares are expected to list at a premium of 114.09%, translating to a listing price of ₹471.
2. Price Band: The price range for the IPO has been set between ₹209 and ₹220 per share.
3. Subscription Dates: The IPO opened on Wednesday, September 25, and will close on Friday, September 27.
4. IPO Size: The company is issuing up to 1,55,23,000 shares with a face value of ₹10 each, aiming to raise around ₹342 crore.
5. Lot Size: Investors can apply for a minimum of 65 shares, with the investment amount starting at ₹14,300. Retail investors can purchase up to 13 lots.
6. Allotment Date: Share allotment is expected to be finalized on Monday, September 30. Successful applicants will have their shares credited to their demat accounts by October 1, with refunds issued to those not receiving allotments.
7. Registrar: Bigshare Services Private Limited is managing the IPO’s registration process.
8. Listing Date: Shares are scheduled to be listed on the BSE and NSE, tentatively on Thursday, October 3.
9. Use of Proceeds: KRN Heat Exchanger plans to use the IPO proceeds to invest in its subsidiary, KRN HVAC Products Private Limited, for setting up a new manufacturing facility in Neemrana, Rajasthan. The remaining funds will go towards general corporate purposes.
10. Company Overview: Specializing in the manufacture of heat exchangers with fins and tubes for HVAC and refrigeration industries, KRN Heat Exchanger’s product range includes components such as sheet metal parts, evaporator coils, and fluid and steam coils. The company reported a profit of ₹11 crore in FY22, which surged to over ₹32 crore in FY23 and ₹39 crore in FY24.