Investors are showing strong interest in Rajasthan-based KRN Heat Exchanger and Refrigeration, as its initial public offering (IPO) saw a significant 58.17 times oversubscription on the second day of bidding, September 26. The positive momentum in the secondary market is also contributing to the strong subscription figures.
The heat exchanger manufacturer aims to raise ₹341.95 crore through the public issue, which consists entirely of a fresh issue of 1.55 crore equity shares at the upper price band.
According to data published by the exchanges, investors placed bids for 63.94 crore shares, against the offer size of 1.09 crore shares. Non-institutional investors led the charge, subscribing 135.85 times their allotted portion, followed by retail investors at 55.53 times, and qualified institutional buyers at 3.16 times.
KRN Heat Exchanger, a producer of fin and tube-type heat exchangers for the HVAC and refrigeration industries, had already raised ₹100.1 crore through its anchor book on September 24.
Out of the IPO proceeds, ₹242.46 crore will be used to establish a new manufacturing facility in Alwar, Rajasthan, through its subsidiary KRN HVAC Products, with the remainder allocated for general corporate purposes.
In the grey market, the company’s IPO shares are trading at a 114% premium over the upper price band of ₹209-220 per share, according to market observers.
