The upcoming initial public offering (IPO) of KRN Heat Exchanger and Refrigeration Limited is garnering significant attention in the investment community. As the company prepares to launch its IPO on September 25, 2024, potential investors are eager to understand the details and implications of this offering. In this article, we’ll break down the key aspects of the KRN Heat Exchanger IPO, including its objectives, financials, and what it means for prospective investors.
KRN Heat Exchanger IPO Details and Schedule
The KRN Heat Exchanger IPO will open for subscription on Wednesday, September 25, 2024, and will close on Friday, September 27, 2024. This IPO features an issue price band set between Rs 209 and Rs 220 per equity share. Investors should note that the IPO aims to raise a total of Rs 341.95 crore at the upper price level and Rs 324.85 crore at the lower price band.
The IPO’s anchor investor bidding will occur on September 24, 2024, a day before the public offering begins. The tentative date for the IPO listing is set for October 3, 2024, and it will be available on both the BSE and NSE.
Grey Market Premium and Listing Expectations
Ahead of its official listing, the KRN Heat Exchanger IPO has shown a promising grey market premium (GMP) of Rs 223, translating to a 101.36% listing gain based on the upper price band of Rs 220. This indicates strong market sentiment and anticipation for a successful IPO debut on the exchange.
Financial Performance
For the fiscal year ending March 31, 2024, KRN Heat Exchanger reported a revenue of Rs 313.60 crore and a net profit of Rs 39.88 crore. This marks an improvement from the previous fiscal year (2022-2023), where the company achieved sales of Rs 250.02 crore and a profit of Rs 31.51 crore, showcasing a positive growth trajectory.
Objective of the IPO
According to the company’s Red Herring Prospectus (RHP), the net proceeds from the IPO will be primarily used to invest in its wholly-owned subsidiary, KRN HVAC Products Private Limited. The funds will facilitate the establishment of a new manufacturing facility in Neemrana, Alwar, Rajasthan, with an estimated cost of Rs 24,246.10 lakh. Additionally, part of the proceeds will be allocated for general corporate purposes.
Reservation and Allocation Details
The IPO follows a book-building process, with a structured reservation strategy:
- Qualified Institutional Buyers (QIBs): Up to 50% of the shares are reserved for QIBs on a proportionate basis.
- Retail Individual Bidders: Not less than 35% of the shares are allocated for retail investors.
- Non-Institutional Bidders: At least 15% of the shares are available for non-institutional bidders.
To participate, retail investors must place a minimum bid of Rs 14,300, which corresponds to 65 equity shares, and additional bids can be made in multiples of 65 shares.
About KRN Heat Exchanger
KRN Heat Exchanger and Refrigeration Limited is a prominent manufacturer and exporter of heat exchange products, including copper tubes, aluminum fins, water coils, condenser, and evaporator coils. The company supplies high-quality products to well-known OEMs in the refrigeration, air conditioning, heating, and ventilation sectors. Its clientele includes industry giants like Knorr Bremse, Voltas, Carrier, and Daikin India.
Conclusion
The KRN Heat Exchanger IPO presents an intriguing opportunity for investors seeking to participate in a growing company within the HVAC&R industry. With a solid financial performance, strategic objectives for expansion, and a favorable GMP, the IPO is poised to make a significant impact upon its listing. Investors interested in this offering should consider their investment goals and risk tolerance before making a decision.
FAQ
What is the subscription date of KRN Heat Exchanger IPO?
The KRN Heat Exchanger IPO will open for subscription on Wednesday, September 25, 2024, and will close on Friday, September 27, 2024.
