KRN Heat Exchanger IPO Opens On Sept 25: Here's What The GMP Indicates
Grey market premium suggests the shares could list 109% higher than the IPO price of Rs 220.
The initial public offering of KRN Heat Exchanger and Refrigeration Ltd., which will open for subscription on Sept. 25, is likely to receive a strong response from investors, as per the grey market premium (GMP) trends.
The GMP on the stock climbed to Rs 240 as of 12:25 p.m. on Monday, Investor Gain reported. This indicates that the estimated listing price, which is the sum of GMP and the upper end of the IPO price band, is Rs 460.
If the shares list at Rs 460, it would mark a premium of 109% as against the upper IPO price of Rs 220. However, GMP is not an official price quote for the stock and is based on speculation.
The subscription window will be open for investors from Sept. 25 to Sept. 27. The IPO price band is the range of Rs 209-Rs 220 per share. The bidding round for anchor investors will open on Sept. 24.
The minimum lot size for bidding will be 65 shares, with further bids to be made in multiples thereof, according to the company.
IPO Size
Through the mainboard issue, the Rajasthan-based KRN Heat Exchanger aims to raise up to Rs 341.95 crore. The company's maiden offering comprises only a fresh issue of 1.55 crore equity shares with no offer-for-sale component.
Proceeds from the issue will be used for investment in wholly-owned subsidiary KRN HVAC Products for setting up a new manufacturing facility in Rajasthan's Neemrana, as per the company's IPO draft papers.
Holani Consultants is the sole book-running lead manager for the issue.
The company also undertook a pre-IPO placement of 4.77 lakh equity shares at Rs 200 apiece, it said in its price band advertisement. This allowed it to raise Rs 9.54 crore.
Notably, KRN Heat Exchanger is a manufacturer of fin and tube-type heat exchangers for the air conditioning and refrigeration industry. It has business ties with leading industry players like Daikin Air conditioning India Pvt., Schnieder Electric IT Business India Pvt., Kirloskar Chillers Pvt., Blue Star Ltd. and Climaventa Climate Technologies Pvt.
Currently, the company's entire manufacturing operations are carried out at its consolidated facility comprising two industrial plots situated in the RIICO Industrial Area located in Rajasthan's Neemrana.
