KRN Heat Exchanger and Refrigeration made a remarkable entry into the stock market, with shares soaring more than 117% on their debut. The company’s initial public offering (IPO) was priced between ₹209 and ₹220 per share, and it quickly gained traction among investors, reflecting strong market confidence.
Full Details
KRN Heat Exchanger shares opened at ₹470 on the Bombay Stock Exchange (BSE), marking a 113.64% increase from the issue price. On the National Stock Exchange (NSE), the stock debuted even higher at ₹480, which represents an impressive 118.18% rise. Throughout the day, shares reached a peak of ₹513.40 before closing at ₹478.45 on BSE and ₹473.99 on NSE, indicating robust trading activity and investor enthusiasm.
The IPO itself was highly successful, with an overwhelming subscription rate of 213.26 times. This was driven primarily by strong interest from institutional investors, particularly non-institutional investors who subscribed 431.63 times their allotted shares. The total funds raised from the IPO amounted to ₹342 crore, all of which will be utilized for expanding KRN’s manufacturing capabilities and general corporate purposes.
KRN Heat Exchanger specializes in manufacturing fin and tube-type heat exchangers used in heating, ventilation, air conditioning, and refrigeration (HVAC&R) applications. The company operates out of its manufacturing facility located in Neemrana, Rajasthan, where it produces a variety of products tailored to meet diverse customer needs.
Market Performance Insights
The strong debut has sparked discussions among analysts regarding the future performance of KRN Heat Exchanger shares. Some experts suggest that investors should consider booking profits given the substantial gains realized on the first day of trading. The stock’s performance has exceeded initial grey market predictions, which had anticipated a listing price closer to ₹468.
Analysts highlight that KRN’s expertise in manufacturing high-quality heat exchangers positions it well for future growth. The company’s consistent revenue growth—recording a 25% increase year-on-year to ₹308 crore in FY24—coupled with a net profit of ₹39 crore, further enhances its appeal to investors
Important Levels to Watch
As trading continues after its debut, several key levels are being monitored for KRN Heat Exchanger shares:
- Support Level: Analysts suggest that if the stock maintains above ₹470, it could indicate continued strength.
- Resistance Level: A significant resistance level is seen at around ₹500; breaking this could lead to further upward momentum.
- Volatility Considerations: Given the high subscription rate and initial trading activity, volatility may remain elevated in the coming days as investors react to market conditions.
Investors are encouraged to keep an eye on trading volumes and market sentiment as these factors will likely influence price movements in the short term.
