KRN Heat Exchanger IPO opens for bidding: Subscribe or skip?

The initial public offering (IPO) of KRN Heat Exchanger opened for bidding on Wednesday looking to raise Rs 341.95 crore from its public issue.
KRN Heat Exchanger and Refrigeration Ltd specialises in producing fin and tube-type heat exchangers. The company manufactures heat exchangers with copper and aluminium fins and copper tubes, as well as water coils, condenser coils, and evaporator coils.
IPO of KRN Heat Exchanger is entirely a fresh issue of 1.55 crore shares and will be open for subscription till September 27.
The price band for the IPO is set at Rs 209 and Rs 220 per share. Retail investors need to apply for a minimum of 65 shares, requiring an investment of Rs 14,300.
For small non-institutional investors (sNII), the minimum application size is 14 lots, which equals 910 shares, totalling Rs 200,200. For large non-institutional investors (bNII), the minimum is 70 lots, or 4,550 shares, amounting to Rs 1,001,000
“Industry leader with international quality standards. Quick turnaround time. Strong relationship with leading clients. Steady growth in both revenue and profitability. The IPO’s valuation is considered fair, although there is no listed peer for comparison. Given its strong fundamentals and potential for listing gains, investors may consider subscribing this IPO for listing gain as well as for long term,” said an IPO note from Swastika Investmart Ltd.
The proceeds from the IPO will be used to invest in the company’s wholly-owned subsidiary, KRN HVAC Products Pvt Ltd, and will also be allocated towards general corporate purposes.
The latest grey market premium (GMP) for the KRN Heat Exchanger IPO is Rs 239, as of 09:56 AM on September 25, 2024.
Given the IPO price band of Rs 220, the estimated listing price is Rs 459 (cap price + today’s GMP). This suggests an expected gain of 108.64% per share.
The allotment for the KRN Heat Exchanger IPO is set to be finalised on Monday, 30th September 2024.
The company’s shares are expected to be listed on both BSE and NSE, with the tentative listing date scheduled for Thursday, 3rd October 2024.
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