KRN Heat Exchanger, a well-known company in the heat exchanger industry, launched its Initial Public Offering (IPO) on Wednesday, September 25. The company aims to raise approximately ₹342 crore through this IPO, which will remain open for subscription until Friday, September 27. Investors have shown great interest in this IPO, and the first day has already seen a strong response.
The total size of the KRN Heat Exchanger IPO is ₹342 crore, and all of the shares offered are new, meaning there is no Offer for Sale (OFS) from existing shareholders. The company is offering 1.55 crore shares, which means it is raising fresh funds through this IPO. The price band for the IPO has been set between ₹209 to ₹220 per share. This price band gives investors a range within which they can bid for shares.
The Grey Market Premium (GMP) is the extra amount people are willing to pay for the shares in the unofficial grey market before they are listed on the stock exchanges. For KRN Heat Exchanger’s IPO, the latest GMP is ₹239, which suggests that investors are optimistic about the company’s performance. Based on the GMP, it is expected that KRN Heat Exchanger’s shares may list at a premium of about 108.64%, which means the shares could list at around ₹459.
On the first day of the IPO, the response from investors was very strong. Within the first few hours, the IPO was already oversubscribed. The overall subscription had reached 8.02 times the total shares on offer. This means that there were more investors looking to buy shares than the number of shares available.
The subscription status for different categories of investors is as follows:
- Retail investors: The portion reserved for retail investors was subscribed 9.33 times, which shows a high level of interest from small, individual investors.
- Non-institutional investors (NIIs): This category, which includes wealthy individuals and companies, saw a subscription of 15.45 times.
- Qualified Institutional Buyers (QIBs): This category, which includes banks and large financial institutions, saw less demand on the first day, with a subscription of just 0.01 times.
For retail investors, the minimum lot size is 65 shares. At the upper price band of ₹220 per share, this means that the smallest amount you can invest is ₹14,300. Retail investors can apply for up to 13 lots, which means the maximum investment they can make is ₹186,900.
Key Dates
Here are some important dates to keep in mind for the KRN Heat Exchanger IPO:
- Closing Date: The IPO will close on Friday, September 27.
- Allotment Date: The shares are expected to be allotted to investors on Monday, September 30.
- Refund Date: If you do not receive an allotment, you can expect a refund on Tuesday, October 1.
- Listing Date: The company’s shares are expected to list on the BSE and NSE on Thursday, October 3.
KRN Heat Exchanger manufactures a wide range of products used in heating, ventilation, air conditioning (HVAC), and refrigeration. The company produces components like heat exchangers with fins and tubes, sheet metal parts, evaporator coils, and other related products. Its products are used by industries that rely on cooling and heating systems, making KRN Heat Exchanger an important player in this space.
KRN Heat Exchanger’s IPO has generated a lot of interest, especially among retail and non-institutional investors. With strong demand and positive signs from the grey market, the IPO could see a good listing. However, as with any investment, it’s important to do your own research and understand the risks involved before applying. If you are uncertain, consulting a financial advisor can help you make a more informed decision.
