KRN Heat Exchanger and Refrigeration Ltd. made a remarkable debut on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The shares opened at ₹480 on the NSE, reflecting a stunning premium of 118.18% over the issue price of ₹220 per share. On the BSE, the stock is listed at ₹470, marking a premium of 113.64% over its IPO price. This strong performance was anticipated due to overwhelming demand during the initial public offering (IPO), which was subscribed 214.42 times overall.
Summary of Key Information
- Listing Date: October 3, 2024
- NSE Opening Price: ₹480 (118.18% premium)
- BSE Opening Price: ₹470 (113.64% premium)
- IPO Subscription Rate: 214.42 times
- Key Clients: Daikin Air Conditioning India Pvt., Schneider Electric IT Business India Pvt., Kirloskar Chillers Pvt.
- Use of Proceeds: Investment in KRN HVAC Products for a new manufacturing facility in Neemrana.
KRN Heat Exchanger specializes in manufacturing fin and tube-type heat exchangers primarily for the heating, ventilation, air conditioning, and refrigeration (HVAC&R) industry. The company’s manufacturing operations are based in Neemrana, Rajasthan, where it produces a variety of products including condenser coils, evaporator units, and fluid coils. The firm has established long-term relationships with major clients such as Daikin Air Conditioning India Pvt. Ltd., Schneider Electric IT Business India Pvt. Ltd., and Kirloskar Chillers Pvt. Ltd., which enhances its market credibility.
The IPO, which opened for subscription from September 25 to September 27, 2024, aimed to raise ₹342 crore through a fresh issue of shares. The price band was set between ₹209 and ₹220 per share. Notably, the KRN Heat Exchanger IPO garnered significant interest from institutional investors, leading to a subscription rate of 431.63 times for non-institutional investors and 253.04 times for qualified institutional buyers.
KRN Heat Exchanger Shares Market Performance
As trading progressed on October 3, shares of KRN Heat Exchanger rose further to a high of ₹497.89, indicating an increase of 3.7% from its opening price of ₹480. The stock’s performance exceeded expectations set by grey market predictions, which had estimated a listing price of around ₹468 to ₹470.
The positive market sentiment surrounding KRN Heat Exchanger is attributed to its strong fundamentals and growth potential in the HVAC&R sector. Analysts have noted that the company’s consistent revenue growth and profitability make it an attractive investment opportunity.
KRN Heat Exchanger Shares Investment Insights
Given the robust demand for KRN Heat Exchanger’s shares during the IPO and its impressive market debut, analysts suggest that investors who received allocations may consider booking profits due to the significant listing gains. However, they also advise caution for those who did not participate in the IPO, recommending they wait for the stock price to stabilize before making any investment decisions.
