KRN Heat Exchanger IPO attracts massive 58.17 subscription on day 2, GMP more than doubles IPO price

KRN Heat Exchanger and Refrigeration IPO

Investors seem to be bullish on Rajasthan-based KRN Heat Exchanger and Refrigeration as its initial public offering recorded a massive 58.17 subscription on the second day of bidding, September 26. The strong momentum in the secondary market also seems to be boosting subscription numbers.

The heat exchangers maker intends to raise Rs 341.95 crore through public issue comprising an entirely fresh issue of 1.55 crore equity shares at the upper price band.

Investors bought 63.94 crore equity shares of the company, against the offer size of 1.09 crore shares, the subscription data published on the exchanges showed.

Non-institutional investors remained at the leading position, buying 135.85 times the allotted quota, followed by retail investors who bid 55.53 times the reserved portion, while the part set aside for qualified institutional buyers was subscribed 3.16 times.

KRN Heat Exchanger, which manufactures fin and tube type heat exchangers for the heat ventilation air conditioning and refrigeration industry, has already mobilised Rs 100.1 crore through anchor book on September 24.

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It will invest Rs 242.46 crore out of the issue proceeds for setting up a new manufacturing facility at Alwar, Rajasthan by subsidiary KRN HVAC Products, and the remaining funds will be utilised for general corporate purposes.

In the grey market, its IPO shares traded at a 114 percent premium over the upper end of the price band of Rs 209-220 per share, the market observers said.

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