Earlier IPOs would get oversubscribed in hours. Now they are getting oversubscribed in minutes!!! With the equity markets in the grip of a seemingly endless bull run, investors are lapping up IPOs like ice-cream on a sunburnt afternoon. KRN Heat Exchanger created a record of sorts when its Rs 342-crore IPO got oversubscribed in just about 15 minutes after the process of bidding opened on Wednesday, September 25.
The Alwar-based company generated big enthusiasm in the market as indicated by galloping GMP or Grey market Premium before the bidding process began.
KRN Heat Exchanger GMP
Investorgain discloses that the GMP for this IPO kept on rising since September 16, when it was Rs 215. Between September 17 and 19, it went up to Rs 225 after which it marginally dipped to Rs 223 on September 20 and 22. It again began upward movement to reach Rs 240 on September 23 and finally climbed to Rs 251 on September 25 and 26. Considering an issue price of Rs 220, the GMP of Rs 251 represented a listing gain of 114.09%.
The GMP climbed to Rs 274 even on September 27, indicating a listing gain of 124.55%. However, one must never lose sight of the fact that GMP is an unofficial estimate.
KRN Heat Exchanger Financials
In FY24, KRN Heat Exchanger registered a net profit of Rs 39.07 crore on a revenue of Rs 313.54 crore which put its profit margin at 12.46% of revenue. Till the end of the last financial year, the company from Rajasthan ran up a total debt of Rs 59.69 crore. The company’s debt-equity ratio stood at 0.45 and its RoNW (return on net worth) was at 29.68%.
Business
The company is a prominent name in the manufacture of fin and tube-type heat exchangers of copper and aluminium – essential items in the rapidly expanding AC and water cooler segments. It also manufactures condenser coil, evaporator coils and water coils which are components of colling machines and air conditioners.
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KRN Heat Exchanger IPO has been subscribed 58.55 times overall till the morning of September 27, while the retail portion has been subscribed 56.14 times. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
