KRN Heat Exchanger IPO Highlights: GMP Today, Allotment Status, Listing Time and Date – Here’s all you need to know

According to draft documents submitted to the market regulator, the company’s registrar is expected to finalize the allotment of shares on September 30. Investors can check the allotment status on the website of the registrar, Bigshare Services India. Refunds and the crediting of shares to Demat accounts will begin on October 1.

What are the risks of the KRN Heat Exchanger IPO. “Delay or cancellation of orders by any one or all of our top customers could have a material and adverse effect on our business, results of operations and financial condition,” said KRN Heat Exchanger in its RHP. Read more here.

The net proceeds from the fresh issue will be allocated for the following purposes: Investment in KRN HVAC Products Pvt Ltd, a wholly owned subsidiary, to establish a new manufacturing facility in Neemrana, Alwar, Rajasthan; General corporate purposes.

Two interesting IPOs on the anvil – KRN Heat Exchanger and Diffusion Engineers are up for grabs. Are you confused about which one to opt for? Read more here.

The market capitalization of the KRN Heat Exchanger IPO is Rs 1,309.51 crores. This valuation reflects the company’s position in the market as it seeks to attract investors through its initial public offering.

KRN Heat Exchanger and Refrigeration is a leading manufacturer of fin and tube-type heat exchangers. The company produces heat exchangers with copper and aluminum fins, as well as copper tubes, water coils, condenser coils, and evaporator coils. It offers heat exchanger tubes in various shapes and sizes, ranging from 5 mm to 7 mm, 9.52 mm, 12.7 mm, and 15.88 mm in diametre.

The KRN Heat Exchanger IPO offers a total of 1,55,43,000 shares, allocated as follows: 31,07,455 shares (19.99%) for qualified institutional buyers (QIB), 23,87,215 shares (15.36%) for non-institutional investors (NII), 54,98,330 shares (35.37%) for retail individual investors (RII), and 45,50,000 shares (29.27%) for anchor investors.

Holani Consultants Private Limited is the book-running lead manager for the KRN Heat Exchanger IPO, while Bigshare Services Pvt Ltd serves as the registrar for the issue.

The price band for the KRN Heat Exchanger IPO is set at Rs 209 to Rs 220 per share. Retail investors can apply with a minimum lot size of 65 shares, requiring an investment of Rs 14,300. For small and medium institutional investors (sNII), the minimum investment is 14 lots (910 shares), totaling Rs 200,200. Meanwhile, for large institutional investors (bNII), the minimum investment is 70 lots (4,550 shares), amounting to Rs 1,001,000.

The bidding for the KRN Heat Exchanger IPO commenced on September 25, 2024, and concluded on September 27, 2024. Allotment results are expected to be finalized on Monday, September 30, 2024. The IPO is set to be listed on the BSE and NSE, with a tentative listing date scheduled for Thursday, October 3, 2024.

KRN Heat Exchanger is launching an IPO to raise Rs 341.95 crores through a book-built issue. The offering consists entirely of a fresh issue of 1.55 crore shares. This move aims to bolster the company’s capital base and support its growth initiatives.

Financial institutions, banks, FIIs, and mutual funds registered with SEBI are classified as Qualified Institutional Buyers (QIBs). In many cases, QIBs represent the interests of small investors who invest indirectly through mutual funds, ULIP schemes from insurance companies, or pension schemes.

On Day 2, September 26, the total subscription rose to 58.55 times, with QIB at 3.16 times, NII at 136.22 times, and retail at 56.14 times.

On Day 1, September 25, the issue was subscribed 26.11 times overall, with QIB at 1.44 times, NII at 55.59 times, and retail at 27.24 times.

The KRN Heat Exchanger IPO ranks among the top 5 IPOs by application numbers. It received a total of 65.14 applications- more than Reliance Power, that had received 48 lakh applications. Bajaj Housing Finance IPO is the top ranking one with a total of 89.1 lakh applications followed by Tata Tech IPO at 73.6 lakh applications and LIC IPO holds the third position with 73.4 lakh applications.

KRN Heat Exchanger IPO was subscribed 213.27 times by the close of September 27, 2024, at 6:13:08 PM. The retail category saw a subscription of 96.52 times, the Qualified Institutional Buyers (QIB) category was subscribed 253.04 times, and the Non-Institutional Investors (NII) category received a massive subscription of 430.40 times.

The price band for the KRN Heat Exchanger IPO is set between Rs 209 and Rs 220 per share, with a minimum application lot size of 65 shares. Retail investors need to invest a minimum of Rs 14,300. For sNII (small non-institutional investors), the minimum investment is 14 lots, or 910 shares, totaling Rs 200,200, while for bNII (big non-institutional investors), the minimum investment is 70 lots, or 4,550 shares, amounting to Rs 1,001,000.

KRN Heat Exchanger IPO opened for subscription on September 25, 2024, and closed today, September 27, 2024. The allotment of shares is expected to be finalised on Monday, September 30, 2024. The IPO is set to list on the BSE and NSE, with a tentative listing date of Thursday, October 3, 2024.

KRN financials have seen an increase in revenue from 156 Crores in FY22 to 308 Crores in FY24 which grew by a CAGR of 25 per cent with a strong order book, and repeat orders from large customer groups.

KRN plans to expand the business to reap the benefits of forward integration and incorporate a wholly owned subsidiary KRN HVAC Products to increase value-added products in our existing portfolio and venture into the distribution and sales channels that allow to control the marketing and distribution of the complete product range of heat exchangers.

KRN plans to expand its capacity, which will increase revenues from existing as well as new products like bar and plate heat exchangers, oil cooling units with blowers, and motor and roll bond evaporators with improved margins from the export markets.

KRN Heat Exchanger and Refrigeration (KRN) manufactures fin and tube-type heat exchangers for the heat ventilation air conditioning and refrigeration (HVAC&R) industry and their products are primarily made from non-ferrous metals such as copper and aluminum.

KRN has worked with 113 customers, increasing exports from 10 to 15 per cent over FY22- 24 expanding the customer network across Europe, diversifying the customer base, and increasing the market share. However, the exports began in 2019.

The KRN manufacturing unit is equipped to carry out end-to-end manufacturing activities and is located in the RIICO industrial areas of Neemrana, Rajasthan. It has experience in precision engineering, strategically located production facilities, and a focus on design, along with advanced manufacturing technology which is also cost-effective.

Commenting on the KRN Heat Exchanger IPO Anshul Jain, Head of Research, Lakshmishree Investment & Securities said that The IPO of heat exchanger tube manufacturer KRN Heat Exchanger is seeing strong demand from retail and non-institutional investors. The Rs 342 crore issue opened for subscription on September 25 and will close on September 27. Prior to the IPO, the company raised Rs 100.10 crore from 10 anchor investors, allocating 45.5 lakh shares at Rs 220 per share.

Jain also added that With no offer-for-sale component, the entire issue consists of 1.55 crore fresh shares. The grey market premium (GMP) for the IPO surged to Rs 251, suggesting a potential listing price of Rs 471, a remarkable 114% premium. KRN plans to use the proceeds to fund its new manufacturing facility in Neemrana, Rajasthan, and for general corporate purposes. The company, a key supplier of heat exchangers for the HVAC and refrigeration industries, has seen impressive growth, with profits rising from Rs 11 crore in FY22 to Rs 39 crore in FY24.

The non-institutional investors’ (NIIs) portion of the KRN Heat Exchanger IPO was subscribed 247.44 times, while the retail investors’ segment saw a subscription of 72.80 times. Meanwhile, the allocation for qualified institutional bidders (QIBs) received bids 4.93 times their reserved quota as of the latest data.

As of September 27, the KRN Heat Exchanger IPO has been subscribed 76.54 times, reflecting strong investor interest. The retail segment of the IPO was oversubscribed by 66.53 times, while non-institutional investors (NIIs) showed an overwhelming response, subscribing to the issue 193.29 times

The company reported a consolidated net profit of Rs 308 crore in FY24, a jump of almost 40% on year compared to Rs 221 crore it reported in FY23. While it posted a consolidated net profit of Rs 162 crore in FY22.  As the company’s PAT is rising so are its PAT margins over the years, but the point to look at is its sales growth. The company’s sales growth has fallen significantly to 9.1% in FY24 from 24.6% in FY23, a fall of 15.5 percentage points. 

KRN Heat Exchanger is dependent on a clutch of customers for the bulk of its revenue is one of the key concerns. It is susceptible to geopolitical challenges and the raw material supply chain is subject to uncertainties.

The Diffusion Engineers IPO is priced between Rs 159 to Rs 168 per equity share and the issue size is Rs 158 crore. It has been subscribed 7.3 times so far and the company aims to use the money raised for funding capital expenditure requirements towards the expansion of the existing manufacturing facility and setting up of a new manufacturing unit at Nagpur, Maharashtra.