Wed Sep 25 07:53:43 UTC 2024: ## KRN Heat Exchanger IPO Over-Subscribed Within Minutes, Hints at Strong Listing

**Mumbai, September 25, 2024** – KRN Heat Exchanger and Refrigeration’s initial public offering (IPO) has witnessed an overwhelming response from investors, fully subscribing within a mere 12 minutes of opening on Wednesday.

The Rajasthan-based company, specializing in fin and tube-type heat exchangers for the HVAC&R industry, offered shares in the price band of Rs 209-220 apiece. Retail and high-net-worth individuals (HNIs) drove the strong demand, with bids reaching 4.38 times the offer size by 11:00 am.

The non-institutional investor (NII) portion was subscribed 8.64 times, while retail investors saw a 5.01 times subscription. The Qualified Institutional Bidder (QIB) portion, however, remained unsubscribed at the time.

The grey market premium (GMP) for KRN Heat Exchanger suggests a potential multibagger opportunity, with the company commanding a premium of Rs 240 in the unofficial market, hinting at a listing pop of around 110%.

Brokerage firms have largely given a positive outlook on the IPO, citing the company’s strong track record, expansion plans, and consistent financial performance. However, dependence on select customers and rising input costs are identified as potential risks.

KRN Heat Exchanger plans to use the IPO proceeds to expand its manufacturing capacity, aiming to increase production by six times. This expansion is expected to fuel growth in both existing and new product lines, potentially driving revenue and profit margins in the long run.

Ahead of the IPO, KRN Heat Exchanger secured Rs 100.1 crore from 10 anchor investors. The IPO is slated to conclude on Friday, September 27, with the shares expected to be listed on both BSE and NSE on Thursday, October 3.

The IPO is being managed by Holani Consultants as the sole book running lead manager, with Bigshare Services serving as the registrar.

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