KRN Heat Exchanger sees a stellar listing. The stock was listed at Rs 480 on the National Stock Exchange, a premium of 118% to the issue price. It was listed at Rs 470 on BSE.
The company’s IPO price band ranged between Rs 209 to Rs 220 per equity share. The IPO was opened on September 25 and closed on September 27. It raised a sum of Rs 342 crore via sale of 1.55 crore fresh shares. The registrar finalised the allotment of shares on September 30.
Minimum Investment Requirement
A retail buyer had to apply for a minimum of 65 shares or a lot which amounted to Rs 14,300. There were different lot sizes for small and big NIIs.
KRN Heat Exchanger Subscription details
The IPO was subscribed to a total of 213 times and received bids worth Rs 51,611.75 crore. The issue was fully subscribed on day 1 itself. The retail portion was subscribed almost 97 times more than the offered shares. The NII segment was booked 430.54 times, receiving bids worth Rs 22,600 crore.
Objectives of Issue
The net proceeds will be used to invest in the wholly owned subsidiary, KRN HVAC Products for setting up a new manufacturing facility at Alwar, Rajasthan. Some of the funds raised will be utilised for general corporate purposes.
About KRN Heat Exchanger
KRN Heat Exchanger and Refrigeration is a manufacturer of fin and tube-type heat exchangers. The company manufactures copper and aluminium fins, water coils, condenser coils, and evaporator coils. All the products offered are used in the domestic, commercial, and industrial heating, ventilation, air conditioning and refrigeration (HVAC&R) industry.
Expert’s Take on KRN Heat Exchanger IPO
“On the valuation parse, at the upper price band, the company’s implied market cap is around Rs 1,310 crore valuing at a PE of 33.5 times for FY24 which appears to be fully priced. Looking at the company’s experienced legacy along with its plan to expand internationally and rising demand in the HVAC market could aid KRN’s revenue and profit margin in the long run. Therefore we believe that this issue may be considered for its long-term growth. Hence we give a “Subscribe for Long Term” rating to this IPO,” said Anand Rathi Research in a research note.
BRLM and Registrar
Holani Consultants was the sole book-running lead manager for the issue of KRN Heat Exchanger. Bigshare Services worked as the registrar for the IPO.