 |
|
The initial public offering (IPO) of KRN Heat Exchanger and Refrigeration has garnered significant attention from investors, highlighting its potential for substantial returns. The IPO, which opened for bidding on Wednesday, September 25, witnessed an overwhelming response, with the issue fully subscribed within a mere 12 minutes.
This remarkable subscription rate can be attributed to several factors, including the company's strong financial performance, its specialization in manufacturing fin and tube type heat exchangers for the HVAC&R industry, and its ambitious expansion plans. Notably, the grey market premium (GMP) for KRN Heat Exchanger has been indicating a potential multibagger return, prompting investors to flock to the IPO.
The IPO, priced between Rs 209 and Rs 220 per share, saw bids for 4.81,75,400 equity shares, representing a subscription rate of 4.38 times the 1,09,93,000 equity shares offered for subscription. Notably, the non-institutional investor (NII) category saw an 8.64 times subscription rate, while the retail investor segment witnessed a 5.01 times subscription rate.
Brokerage firms, analyzing KRN Heat Exchanger's performance and prospects, largely express a positive outlook on the IPO, suggesting investors subscribe due to the company's longstanding business relationships, increasing capacity, new product development, experienced promoters, consistent financial performance, high-quality and innovative product range. However, risks associated with dependence on select customers and rising input costs are acknowledged.
KRN Heat Exchanger, a key player in the HVAC&R industry, has garnered a strong reputation for its quality and customized fin and tube heat exchangers, primarily manufactured using copper and aluminum. The company's expansion plans, including an increase in production capacity by six times, are expected to drive significant revenue growth, bolstering investor confidence.
The IPO has also seen strong support from anchor investors, with KRN Heat Exchanger raising Rs 100.1 crore from 10 anchor investors by allocating 45.5 lakh shares at Rs 220 apiece. The allocation for the IPO is structured with 50% for qualified institutional bidders (QIBs), 35% for retail investors, and 15% for non-institutional investors (NIIs).
With its established track record, commitment to quality, and expansion initiatives, KRN Heat Exchanger is well-positioned to capitalize on the growing demand for HVAC&R products, both domestically and internationally. The company's IPO offers investors a promising opportunity to participate in its growth trajectory and potentially reap significant returns.
Source: KRN Heat Exchanger IPO subscribed 4 times in an hour; GMP hints at multibagger gains