KRN Heat Exchanger and Refrigeration Limited stands as a prominent manufacturer and exporter, specializing in aluminium/copper fins, copper tubes, heat exchangers, water coils, and condenser and evaporator coils. Their products cater to renowned OEMs in the Heating, Ventilation, Air Conditioning, and Refrigeration (HVAC&R) industry, underscoring their commitment to quality and innovation.

The company is launching a Book Built Issue IPO totaling ₹341.50 Crores, comprising a fresh issue of 155.23 lakh shares. The subscription period for the KRN Heat Exchanger and Refrigerator IPO commenced on September 25, 2024, and will conclude on September 27, 2024. Allotment results are expected to be finalized around September 30, 2024, with shares listed on the BSE NSE on or about October 3, 2024.

The share price band for this IPO is set at ₹209 to ₹220 per equity share, with a minimum lot size of 65 shares. Retail investors must invest at least ₹14,300, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹2,00,200 for 14 lots (910 shares). Holani Consultants Private Limited serves as the book-running lead manager, with Bigshare Services Private Limited acting as the registrar for the issue.

KRN Heat Exchanger and Refrigerator Limited IPO GMP Today

The Grey Market Premium (GMP) for KRN Heat Exchanger & Refrigerator Limited IPO is estimated to be in the range of ₹125 to ₹130. It is essential to understand that the GMP is an informal market indicator, dependent on unregulated demand and supply dynamics, and is not a definitive measure of share pricing prior to listing.

Subscription Status:

As of 4:25 PM on September 27, 2024, the live subscription status for the KRN Heat Exchanger IPO reflects a robust subscription rate of 110.23 times on its final day of the subscription period. Investors can track the ongoing subscription status through the BSE.

Anchor Investors Report:

KRN Heat Exchanger & Refrigerator successfully raised ₹100.1 Crores from anchor investors at a price of ₹220 per share, with 45,50,000 equity shares allocated to these investors from the Qualified Institutional Buyers (QIBs) reservation portion.

Allotment Process:

The KRN Heat Exchanger & Refrigerator IPO allotment date is set for September 30, 2024. Investors can check their allotment status by following these steps:

Visit the IPO allotment status page.

Select KRN Heat Exchanger & Refrigerator Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID, and submit to view your allotment status.

Utilization of IPO Proceeds:

The proceeds from the IPO will be allocated towards:

₹24,246.10 Lakhs for investment in their wholly-owned subsidiary KRN HVAC Products Private Limited to establish a new manufacturing facility in Neemrana, Alwar, Rajasthan.

General corporate purposes.

Financial Overview:

KRN Heat Exchanger has exhibited impressive financial growth, with revenue figures for Fiscal Years 2024, 2023, and 2022 reported at ₹31,354.12 Lakhs, ₹24,988.51 Lakhs, and ₹15,822.53 Lakhs, respectively. The EBITDA for these years stands at ₹5,845.24 Lakhs, ₹4,931.75 Lakhs, and ₹1,693.56 Lakhs, while the Profit After Tax amounts to ₹3,906.86 Lakhs, ₹3,231.35 Lakhs, and ₹1,059.04 Lakhs.

For the KRN Heat Exchanger IPO, the pre-issue Earnings Per Share (EPS) is ₹8.69, and the post-issue EPS is ₹6.28. The pre-issue Price to Earnings (P/E) ratio is 25.31x, with a post-issue P/E ratio of 35.03x. The company has a Return on Capital Employed (ROCE) of 31.21% and a Return on Equity (ROE) of 40.86% for FY24, suggesting that the IPO is priced fairly.

Investment Recommendation:

With a Grey Market Premium (GMP) indicating potential listing gains of 55% to 60%, and based on the company's strong financial performance, we recommend investors to apply for the KRN Heat Exchanger and Refrigerator Limited IPO for both potential listing gains and long-term investment opportunities.

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