KRN Heat Exchanger IPO: Overview
The KRN Heat Exchanger and Refrigeration IPO is generating significant interest in the market as it opens for subscription from September 25, 2024, to September 27, 2024. This initial public offering (IPO) aims to raise approximately ₹341.95 crores through the issuance of 1.55 crore fresh equity shares. The company is renowned for producing fin and tube-type heat exchangers, which are crucial components in the HVAC&R (Heating, Ventilation, Air Conditioning, and Refrigeration) industry.
KRN Heat Exchanger IPO: Key Details
- Price Band:
₹209 – ₹220 per share - Lot size:
65 shares - Minimum Investment:
₹14,300 - The listing date is October 3, 2024.
- Allotment Finalisation:
September 30, 2024
The IPO is an entirely new issue with no offer-for-sale component, indicating that all proceeds will go directly to the company for expansion and operational purposes. Notably, KRN has already secured over ₹100 crore from anchor investors ahead of the public offering.
KRN Heat Exchanger IPO: Use of Proceeds
The primary beneficiaries of the funds raised from this IPO are:
- We are establishing a new manufacturing facility for KRN HVAC Products in Neemrana, Rajasthan.
- The company’s overall goal is to improve its operational capabilities.
Market Sentiment and Growth Potential
The market sentiment surrounding KRN Heat Exchanger’s IPO is overwhelmingly positive. Reports indicate that the shares are trading at a significant premium in the grey market, with a grey market premium (GMP) of around 108% on the opening day. Analysts suggest that this reflects strong investor confidence in the company’s growth trajectory. Experts predict that a compound annual growth rate (CAGR) of 15% will propel the Indian HVAC market from USD 7.8 billion in 2021 to USD 27.4 billion by 2030. Similarly, the heat exchanger market is recovering post-pandemic, with revenues expected to rise significantly in the coming years.
Competitive Positioning
KRN Heat Exchanger has positioned itself as a leader in manufacturing high-quality heat exchangers using non-ferrous metals like copper and aluminium. The company has established partnerships with industry giants such as Daikin and Schneider Electric, further enhancing its reputation and market reach. Analysts from Reliance Securities and Swastika Investmart recommend subscribing to this IPO for both short-term listing gains and long-term investment potential due to its robust fundamentals and growth prospects.
READ MORE: Manba Finance IPO: A Golden Investment Opportunity
Conclusion
Investors looking for opportunities in the HVAC&R sector may find KRN Heat Exchanger and Refrigeration’s IPO appealing due to its promising market position, strategic growth plans, and positive industry outlook. With significant backing from anchor investors and strong pre-IPO sentiment, this offering is poised to attract considerable attention from retail investors. As always, potential investors should conduct thorough research and consider their financial goals before participating in any IPO.
