Today marks a significant milestone for KRN Heat Exchanger and Refrigeration Ltd as it debuts its shares on the stock market. Starting at 10:00 AM, KRN Heat Exchanger shares will trade on the Special Pre-open Session (SPOS), providing investors a chance to take part in this much-anticipated event.
The public subscription for KRN Heat Exchanger commenced on Wednesday, September 25, and concluded on Friday, September 27. The company, based in Rajasthan, successfully raised ₹100 crore from its anchor investors.
The IPO consists of a fresh issue of 1,55,43,000 equity shares with a total valuation of ₹342 crore at the high end of the price band. This large amount underscores the growing investor interest in the HVAC and refrigeration sectors as the company focuses on fulfilling increasing market demands.
Stellar Subscription Achievements
The KRN Heat Exchanger IPO garnered an overwhelming subscription rate of 214.42 times, with bids submitted for 2,35,71,39,005 shares against just 1,09,93,000 shares available. Notably, the non-institutional investors’ segment saw a remarkable subscription rate of 431.63 times. The retail individual investor (RII) category also performed strongly at 98.29 times, while Qualified Institutional Buyers (QIBs) subscribed at 253.04 times.
Such high subscription rates indicate robust market confidence and a promising outlook for the company as it embarks on its journey in the public domain.
Company Overview and Manufacturing Excellence
KRN Heat Exchanger specializes in the supply of fin and tube-type heat exchangers crucial for the heating, ventilation, air conditioning, and refrigeration industry. Its manufacturing operations are centralized at an integrated facility in Neemrana, Rajasthan, equipped to meet growing demand while maintaining premium quality standards.
Market Sentiment and Expert Opinions
As KRN Heat Exchanger approaches its market debut, prominent analysts share their insights. Prashanth Tapse, Senior Vice President of Research at Mehta Equities, notes the tremendous subscription demand and optimistic market sentiment. “We anticipate a blockbuster debut, with potential for doubling investors’ money on the first trading day. We recommend that investors consider booking profits, as valuations may stretch considerably,” he commented.
Meanwhile, Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, mentions that while the IPO’s valuation seems fair, the absence of listed competitors complicates direct comparisons. Nonetheless, the company’s solid fundamentals and favorable market demand are strong indicators of a successful listing. The IPO’s impressive subscription rate of 213.41 times further reflects significant investor interest, accompanied by an enticing grey market premium (GMP) of ₹250, or 113.64% above the issue price.
Grey Market Insights
As of today, the grey market price for KRN Heat Exchanger shares stands at a premium of +₹248. This suggests that the shares could debut at approximately ₹468 each, which represents an increase of 112.73% over the IPO price of ₹220. The robust grey market activity underscores investor enthusiasm and their willingness to pay a premium for shares.
Disclaimer: The views and opinions expressed in this article are solely those of the analysts and expert commentators and do not necessarily reflect those of the publication. Investors are encouraged to seek advice from certified financial professionals before making investment decisions.
