The initial public offering of KRN Heat Exchanger and Refrigeration has received a massive response from investors, with the issue being subscribed 4.38 times within the first hour of bidding. The Rajasthan-based company, which specializes in manufacturing fin and tube-type heat exchangers, plans to raise Rs 341.95 crore through its IPO. Experts believe that KRN's experienced legacy, plans for capacity expansion, and rising demand in the HVAC market make it a promising long-term investment opportunity, with the grey market premium hinting at a potential listing pop of 110%. However, factors such as dependence on select customers and increase in input costs remain as key risks for the company.
KRN Heat Exchanger & Refrigeration Ltd.: A Promising IPO Amidst Rising HVAC Demand
Introduction:
KRN Heat Exchanger & Refrigeration Ltd., a Rajasthan-based manufacturer of fin and tube-type heat exchangers, recently launched its initial public offering (IPO) on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The IPO, which commenced on November 10, 2023, has received an overwhelming response from investors, getting subscribed 4.38 times within the first hour of bidding.
About KRN Heat Exchanger & Refrigeration:
Established in 1986, KRN Heat Exchanger & Refrigeration is a leading player in the Indian HVAC (heating, ventilation, and air conditioning) industry. The company caters to a wide range of sectors, including pharmaceuticals, dairy, food processing, and cold chain. KRN's heat exchangers are known for their high efficiency and durability, making them a preferred choice for various industrial and commercial applications.
IPO Details:
The company plans to raise Rs 341.95 crore through its IPO. The issue price is fixed at Rs 95-98 per share, with a lot size of 150 equity shares. The proceeds from the IPO will be used for capacity expansion, working capital requirements, and debt repayment.
Factors Driving the IPO Success:
Several factors have contributed to the strong investor interest in KRN's IPO:
Risks Associated with the Investment:
While KRN's IPO offers promising opportunities, investors should be aware of certain risks:
Top 5 FAQs:
Q1: What is the issue price of the KRN Heat Exchanger & Refrigeration IPO? A: The issue price is fixed at Rs 95-98 per share.
Q2: When is the IPO closing date? A: The IPO closes on November 12, 2023.
Q3: What is the expected listing date for the IPO? A: The shares are expected to be listed on the BSE and NSE on November 16, 2023.
Q4: What are the key risks associated with investing in KRN Heat Exchanger & Refrigeration? A: Key risks include dependence on select customers and increase in input costs.
Q5: What is the grey market premium for KRN Heat Exchanger & Refrigeration IPO? A: As of November 10, 2023, the grey market premium for the IPO is around 110%, indicating strong investor sentiment and potential for a listing pop.
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KRN Heat Exchanger and Refrigeration Ltd's highly anticipated initial public offering has been met with overwhelming response, with the IPO getting fully subscribed within minutes of opening for share sale. The company has raised Rs 100 crore from anchor investors and plans to raise a total of Rs 342 crore through its IPO. The funds will primarily be used for expanding manufacturing and setting up a new facility in Rajasthan, showcasing the company's growth plans and strong position in the heat ventilation and refrigeration industry. Don't miss your chance to invest in this promising IPO.