The allotment of shares for KRN Heat Exchanger and Refrigeration’s Initial Public Offering (IPO) is expected to be finalized today, marking a key event for investors. This IPO saw strong demand from various types of investors, leading to a massive oversubscription of 214.42 times. The subscription period for the IPO, which closed on September 27, 2024, attracted bids for 2.36 billion shares, far exceeding the 109.93 million shares available for sale.
The IPO garnered considerable interest from different investor categories. Non-Institutional Investors (NIIs) led the way with a subscription rate of 431.63 times the available shares, showcasing a significant appetite for KRN’s stock. Qualified Institutional Buyers (QIBs), which include large financial institutions, subscribed 253.04 times. Retail Individual Investors (RIIs) showed strong interest as well, subscribing 98.29 times the shares allocated to them, according to the Bombay Stock Exchange (BSE) data.
Before investing in any IPO, it is crucial to thoroughly research the company and understand its business, financials, and growth potential. IPOs can offer high returns but also come with risks. Investors should evaluate the company’s performance, market position, and the purpose of the funds raised to make informed decisions. Reviewing the company’s financial statements, business model, and industry trends can help investors understand whether the IPO aligns with their investment goals.
Checking the Allotment Status
Once the allotment is finalized today, investors can check if they have received shares through several channels. The allotment status can be checked on the official websites of BSE, NSE, and Bigshare Services, which is the registrar for the issue. Investors can directly visit the following links to check their status:
- BSE Website: Check allotment status here
- Bigshare Services Website: Check allotment status here
- NSE Website: Check allotment status here
The company’s shares are also generating buzz in the grey market, where unlisted shares are traded. As of Monday, KRN Heat Exchanger’s shares were trading at a premium of ₹270, representing a 122.73% increase over the upper end of the IPO price band, which was set at ₹220. Although the Grey Market Premium (GMP) has slightly decreased by ₹6 from ₹276 on September 27, it still indicates strong demand and the potential for high returns for investors.
KRN Heat Exchanger’s shares are expected to be listed on the stock exchanges BSE and NSE on October 3, 2024. Based on the current grey market premium, the shares might debut at around ₹490, more than double the upper-end IPO price of ₹220. This could offer investors who were allotted shares a solid return on their investment.
The company offered 15.54 million new shares in the IPO, with a price band set between ₹209 and ₹220 per share. The IPO opened for subscription on September 25, 2024, and closed on September 27, 2024.
KRN Heat Exchanger and Refrigeration is a key player in the Heating, Ventilation, Air Conditioning, and Refrigeration (HVAC&R) industry. The company specializes in manufacturing products like fin and tube heat exchangers, water coils, condenser coils, evaporator coils, and heat exchanger tubes in different sizes. With a growing presence in the HVAC&R market, the company is well-positioned to expand its operations and meet increasing demand.
The success of KRN Heat Exchanger’s IPO, with its high oversubscription rates and strong grey market activity, highlights investor confidence in the company’s growth prospects and the HVAC&R industry as a whole. However, investors should always research thoroughly before investing in any IPO to ensure it aligns with their financial goals and risk tolerance.
