KRN Heat Exchanger shares to list today; will it deliver multibagger return?

Shares of KRN Heat Exchanger and Refrigeration are set to make Dalal Street debut on Thursday, October 4 and if one goes by the current grey market premium (GMP), the stock is poised for a bumper listing pop to the investors. Even after a correction in the premium in the unofficial market, KRN Heath Exchanger is seen as a multibagger in making.
 

Ahead of listing, shares of KRN Heat Exchanger were commanding a GMP of Rs 240 per share in the unofficial market, suggesting a listing pop of little more than 110 per cent for the investors. However, the premium in the unofficial market stood at Rs 270 apiece when the allotment status was out.
 

KRN Heat Exchanger and Refrigeration (KHERL) garnered a stellar demand; the stock is expected to see listing gains of over 100 per cent, said Sagar Shetty, Research Analyst at StoxBox. "We advise participants who have been allotted with the issue to book profit from the listing gains," he added.

KRN Heat Exchanger sold its IPO in the fixed price band of Rs 209-220 apiece with a lot size of 65 shares. The IPO of the Rajasthan-based company was open for bidding between September 25 and September 27. The company raised a total of Rs 341.95 crore from its primary offering, which was entirely a fresh share sale of 1,55,43,000 shares.

The issue was overall subscribed a stellar 214.42 times, thanks to all round demand. The quota for non-institutional investors (NIIs) was subscribed 431.63 times, while the portion for qualified institutional bidders (QIBs) was booked a solid 253.04 times. The allocation of retail investors was subscribed 98.29 times during the bidding process.

The IPO of KRN Heat Exchanger saw impressive subscription of, highlighting strong investor interest, said Shivani Nyati, Head of Wealth, Swastika Investmart. "The IPO's valuation was fair. Its strong fundamentals and market demand suggest a promising outlook for the listing," she said.

KRN Heat Exchanger and Refrigeration is a manufacturer of fin and tube-type heat exchangers, offering copper and aluminium fins and copper tubes, heat exchangers, water coils, condenser coils, and evaporator coils. All the products offered are used in the domestic, commercial, and industrial heating, ventilation, air conditioning and refrigeration industry.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to it. Holani Consultants was the sole book running lead manager of the KRN Heat Exchanger IPO, while Bigshare Services served as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.