KRN Heat Exchanger IPO Opens on September 25, Aiming to Raise ₹341.51 Crore - Read Now
KRN Heat Exchanger and Refrigeration Limited is set to launch its much-anticipated Initial Public Offering (IPO) on September 25, with investors able to bid until September 27. The company aims to raise ₹341.51 crore through the issuance of 15,523,000 fresh equity shares. KRN’s IPO has generated interest among investors, especially as no existing shareholders are offloading shares via Offer for Sale (OFS), indicating strong confidence in the company’s future growth.
The IPO shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on October 3, 2024. Here’s everything investors need to know about KRN’s IPO, including investment amounts and the company’s business model.
Investment Opportunities: Minimum and Maximum Bidding
The price band for KRN Heat Exchanger’s IPO has been set between ₹209 and ₹220 per share. For retail investors, the minimum investment starts at one lot, which consists of 65 shares. At the upper price band of ₹220, investors will need to invest ₹14,300 for a single lot.
Those looking to make a larger investment can apply for a maximum of 13 lots, totaling 845 shares. This would require an investment of ₹185,900, calculated at the upper price band.
The IPO has allocated 35% of the issue for retail investors, with 50% reserved for Qualified Institutional Buyers (QIBs) and the remaining 15% for Non-Institutional Investors (NIIs). This structured allocation offers an attractive opportunity for retail investors to be part of a promising company in the HVAC&R (Heating, Ventilation, Air Conditioning, and Refrigeration) industry.
KRN’s Business Model: A Leader in Heat Exchangers
KRN Heat Exchanger and Refrigeration is a key player in manufacturing fin and tube-type heat exchangers used in the HVAC&R industry. Their wide range of products includes condenser coils, evaporator units, fluid and steam coils, and copper parts. The company’s products are supplied to industry giants such as Daikin Airconditioning India, Schneider Electric, Kirloskar Chillers, Blue Star, and Frigel Intelligent Cooling Systems India.
The company’s growth strategy revolves around increasing its production capacity and expanding its customer base in the industrial refrigeration sector. With the funds raised from the IPO, KRN plans to invest in new manufacturing facilities, develop new products, and explore global markets.
Why Invest in KRN’s IPO?
KRN Heat Exchanger’s focus on the HVAC&R industry positions it in a growing market driven by increased demand for efficient cooling and heating systems. The company has established a solid client base with industry leaders, which enhances its credibility. Moreover, the absence of an Offer for Sale (OFS) is a positive signal, as it shows that existing shareholders are confident in the company's long-term prospects.
For those considering an investment in this IPO, the minimum investment amount is relatively affordable at ₹14,300, making it accessible to a broad range of retail investors. The company’s commitment to growth, combined with its expertise in a critical industrial sector, makes this IPO an attractive opportunity.
