KRN Heat Exchanger IPO Anchor Allocation at 29.27%

KRN Heat Exchanger IPO saw a positive anchor allocation response, with 29.27% of the total IPO size subscribed by anchor investors. Out of 15,543,000 shares on offer, anchors picked up 4,550,000 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 24th September 2024, just ahead of the IPO opening on 25th September 2024.

The book-built issue of ₹341.95 crores comprises a fresh issue of 15,543,000 shares. The price band is set at ₹209 to ₹220 per share, with a face value of ₹10 per share. This includes a share premium of ₹210 per share at the upper end of the price band.

The anchor allocation process, which took place on 24th September 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹220 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the KRN Heat Exchanger IPO looks as follows:

Notably, the 45,50,000 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 49.26% before the anchor allocation to 19.99% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For KRN Heat Exchanger and Refrigeration Limited IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 30th October 2024
• Lock-in Period (Remaining Shares): 29th December 2024

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in KRN Heat Exchanger IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 24th September 2024, KRN Heat Exchanger IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 4,550,000 shares were allotted to 10 anchor investors. The allocation was done at the upper IPO price band of ₹220 per share, resulting in an overall anchor allocation of ₹100.10 crore. The anchors have already absorbed 29.27% of the total issue size of ₹341.95 crore, indicating strong institutional demand.

Out of the total allocation of 4,550,000 Equity Shares, 909,220 Equity Shares were allocated to 2 domestic mutual funds, which represents 19.98% of the anchor allocation.

Key KRN Heat Exchanger IPO Details:

• IPO Size: ₹341.95 crores
• Shares Allocated to Anchors: 4,550,000
• Anchor Subscription Percentage: 29.27%
• Listing Date: 3rd October 2024
• IPO Opening Date: 25th September 202

Read more about KRN Heat Exchange IPO

About KRN Heat Exchanger and How to Apply for KRN Heat Exchanger IPO

KRN Heat Exchanger and Refrigeration Ltd is a leading manufacturer of fin and tube-type heat exchangers. The company manufactures Copper and Aluminium fins and copper tubes heat exchangers, water coils, condenser coils, and evaporator coils. It manufactures heat exchanger tubes of different shapes and sizes from 5 mm diameter to 7 mm, 9.52 mm, 12.7 mm, and 15.88 mm. All the products offered are used in the domestic, commercial, and industrial Heating, Ventilation, air conditioning and refrigeration (HVAC&R) industry.

The company boasts a prestigious client list including Daikin Airconditioning India Pvt Ltd, Schneider Electric IT Business India Pvt Ltd, Kirloskar Chillers Private Ltd, Blue Star Ltd, Climaventa Climate Technologies Pvt Ltd, and Frigel Intelligent Cooling Systems India Pvt Ltd. KRN Heat Exchanger also exports products overseas to countries including UAE, USA, Italy, Saudi Arabia, Norway, Czech Republic, Germany, UK, and more.

Its manufacturing facility is situated in Neemrana, Rajasthan, over an aggregated area of 7,800 sq. mt. The company uses the latest coil manufacturing machines including Hair Pin Bender, Fin Press Machine, CNC Tube Bender, and Vertical Expander.

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