Retail investors have shown a keen interest in subscribing to the initial public offering (IPO) of Rajasthan-based KRN Heat Exchanger and Refrigeration. The IPO opened for bidding on Wednesday, September 25, and within 12 minutes, the issue was fully subscribed. The company is looking to raise Rs 341.95 crore through the IPO, with a price range of Rs 209-Rs 220 per share. The Non-Institutional Investor (NII) portion was subscribed the most at 29.67 times, followed by the retail portion at 15.48 times. KRN Heat Exchanger manufactures heat exchangers, coils, and other related products used in home, commercial, and industrial heating, ventilation, air conditioning, and refrigeration systems.
Background
Rajasthan-based KRN Heat Exchanger and Refrigeration is a leading manufacturer of heat exchangers, coils, and other related products for the heating, ventilation, air conditioning, and refrigeration (HVACR) industry. The company has over 30 years of experience in the sector and caters to a diverse customer base, including original equipment manufacturers (OEMs), contractors, and end-users in both domestic and international markets.
Initial Public Offering (IPO)
On September 25, 2023, KRN Heat Exchanger launched its initial public offering (IPO) to raise Rs 341.95 crore. The IPO comprised a fresh issue of shares worth Rs 175 crore and an offer for sale (OFS) of shares by existing shareholders. The price band for the IPO was set at Rs 209-Rs 220 per share.
Investor Response
The IPO received an overwhelming response from investors, particularly retail investors. Within just 12 minutes of opening, the issue was fully subscribed. The retail portion of the IPO was subscribed 15.48 times, while the Non-Institutional Investor (NII) portion was subscribed 29.67 times. This indicates strong investor interest in the company and its growth prospects.
Top 5 FAQs and Answers
To raise capital for expansion plans, reduce debt, and enhance its brand visibility.
To increase production capacity, expand market share, and introduce new products and technologies.
KRN Heat Exchanger has consistently reported strong financial results, with revenue growth and profitability improving in recent years.
Competition, raw material price fluctuations, and changes in economic conditions are some of the risks associated with the company.
Analysts are optimistic about the company's growth prospects, citing the growing demand for HVACR products in India and the company's strong market position.
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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.