KRN Heat Exchanger IPO: KRN Heat Exchanger’s initial public offering (IPO) is set to open for subscription from September 25 to September 27. The company’s shares are trading at a grey market premium (GMP) of ₹240, which represents a significant 110% premium over the issue price. The IPO, priced with an upper band of ₹220, involves a fresh issue of 1.55 crore equity shares.

The offering allocates 50% to qualified institutional buyers, 35% to retail investors, and 15% to non-institutional investors. The proceeds will be used to invest in KRN HVAC Products, the company’s wholly-owned subsidiary, for setting up a new manufacturing facility in Neemrana, Rajasthan. Remaining funds will go toward general corporate purposes.

KRN Heat Exchanger specializes in manufacturing fin and tube type heat exchangers for the HVAC and refrigeration sectors. The company’s products, primarily made from copper and aluminum, include condenser coils, evaporator units, fluid and steam coils, and more. The company manufactures tubes in diameters ranging from 5mm to 15.88mm, catering to diverse customer needs.

KRN Heat Exchanger recently launched its subsidiary, KRN HVAC Products, to expand its product portfolio by manufacturing heat exchangers that the parent company does not currently produce.

In FY24, KRN Heat Exchanger’s revenue grew by 25% to ₹308 crore, and net profit rose by 22% to ₹39 crore. Holani Consultants is the sole book-running lead manager for the IPO.