The IPO of KRN Heat Exchanger, a company based in Alwar that manufactures items used in the heat exchange industry, is floating a book-built IPO of Rs 341.95 crore. It has no OFS (offer for sale) and consists of fresh issue of 1.55 crore shares. Till September 24, the anchor investors have invested Rs 100.10 crore in the issue.
Price, investible lot
Each equity share of KRN Heat Exchanger has been priced at Rs 209-220. A retail investor has to apply for at least 65 shares, which constitutes the minimum investible lot. It would entail a commitment of Rs 14,300. The maximum a retail investor can bid for 13 lots.
Allotment, listing
The process of application for subscription opens on September 25 and would remain open till September 27. The allotment of shares is to be finalised on September 30. The listing will take place on both BSE and NSE on October 3.
GMP
The GMP data of the IPO indicates huge investor interest in this company. According to investorgain, the GMP of this company has been significantly upwards of Rs 200. On September 16, it stood at Rs 215. Between S17 and 19, it was at Rs 225. It came down to Rs 223 where it was between September 20 and 22. It again rose to Rs 240 on September 23 and inched down to Rs 239 on September 24 and 25. Considering an issue price of Rs 220, the latest GMP indicates a listing gain of more than 108%. However, it must be remembered that GMP is an unofficial and dynamic indication only.
Business
The company is engaged in the manufacture of fin and tube-type heat exchangers of copper and aluminium. It also makes evaporator coils, water coils and condenser coils that are widely used in AC and water cooling machines used in domestic and industrial applications which have a rapidly expanding market in India.
Financials
In FY24, the company recorded a net profit of Rs 39.07 crore on a revenue of Rs 313.54 crore. The total loans amounted to Rs 59.69 crore. The debt-equity ratio is 0.45 while the return on networth stands at 29.68%.
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The Rs 342-crore IPO of this Rajasthan-based company has triggered significant enthusiasm among investors in the grey market. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
