KRN Heat Exchanger IPO day 3: GMP, subscription status, review, other details. Apply or not?

KRN Heat Exchanger IPO: Bidding for the initial public offering (IPO) of KRN Heat Exchanger and Refrigeration Limited opened on 26th September 2024 and will remain open until 30th September 2024. The head exchanges company has fixed the KRN Heat Exchanger IPO price band at ₹209 to ₹220 per equity share. The company aims to raise ₹341.95 crore from this book build issue, which is entirely fresh. As per the KRN Heat Exchanger IPO subscription status, the public issue has received a strong response from investors. Meanwhile, after a strong reaction by investors and a strong bias on Dalal Street, the grey market sentiment has further improved. According to stock market observers, shares of the KRN Heat Exchanger and Refrigeration Limited are available at a premium of ₹253 in the grey market today.

KRN Heat Exchanger IPO GMP today

According to market observers, KRN Heat Exchanger IPO GMP (Grey Market Premium) today is ₹253, which is ₹13 higher than Thursday's GMP of ₹240. This means the grey market expects multibagger returns for the lucky allottees of this running mainboard IPO. The market observers believe the rise in the grey market sentiments can be attributed to two significant reasons: vital KRN Heat Exchanger IPO subscription status and the bull trend on Dalal Street. They said that the grey market mood may further improve if the market mood continues to remain firm on the last date of issuing a subscription.

KRN Heat Exchanger IPO subscription status

By 3:06 PM on day 3 of bidding, the book build issue had been subscribed 182.91 times, the retail portion of the initial problem had been booked 87.15 times, the NII segment had been subscribed 400.69 times, and the QIB portion had been filled 185.04 times.

KRN Heat Exchanger IPO: Apply or not?

Giving a 'subscribe' tag to the book build issue, Reliance Securities says, "KRN has established itself as one of the top players in fin and tube-type heat exchangers for the HVAC&R industry using non-ferrous metals like copper and aluminium. KRN is known for its quality and innovation partners with leading industry players like Daikin, Schneider Electric, and Blue Star str, strategically expanding its global reach and enhancing operational efficiency. Being a first-generation entrepreneur with over 19 years of experience in manufacturing heat exchangers and refrigeration units has moved KRN from a single product to a multi-product company with long-standing business relationships with leading clientele and a multi-fold expansion in revenues in the coming years, offering strong growth going ahead with consistent profitability. Hence, we recommend a SUBSCRIBE to the issue."

Indsec Securities has also assigned a 'subscribe' tag to the public issue, saying, “At an upper price band of ₹220, the IPO is attractively priced at a PE of ~35x on FY24 basis. There is no listed peer for the company. Over FY22-24, its Revenue/Ebitda/Apat registered a CAGR of 40.5%/85.8%/92.1%, respectively. Multiple growth opportunities lie ahead for the company on account of (1) low penetration of RAC in Indian households, (2) rising demand for energy-efficient HVAC systems in corporate offices, QSR, warehouses and commercial vehicle space, (3) export opportunity, especially to the USA on back of restriction levied on Chinese products and (4) ramping up of manufacturing capacity in its subsidiary KRN HVAC products Pvt Ltd, which would offer new products in the market. We like the growth prospect and find comfort in valuation at the upper price band. We thereby assign a Subscribe rating to the IPO.”

KRN Heat Exchanger IPO details

The most likely KRN Heat Exchanger IPO allotment date is 28th September 2024, i.e. on Saturday this week. If the share allocation is announced on Saturday, applicants can expect a share allotment announcement on 30th September 2024, i.e. on Monday next week. Bigshare Services Private Limited has been appointed as the official registrar of the book build issue. Following the 'T+3' listing rule, the most likely KRN Heat Exchanger IPO listing date is 3rd October 2024, as 2nd October will be a stock market holiday for Mahatma Gandhi Jayanti.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.