KRN Heat Exchanger Lists at ₹480, Surpassing IPO Price by Over 100% - Read Here
Shares of KRN Heat Exchanger and Refrigeration had a spectacular debut on October 3, 2024, listing at ₹480 on the NSE, which is an impressive 118.18% premium over its IPO price of ₹220. On the BSE, the stock opened at ₹470, reflecting a 113.64% increase.
The initial public offering (IPO) was highly successful, with a total valuation of ₹341.95 crore, and was open for subscription from September 25 to September 27. It was priced between ₹209 and ₹220 per share. The overwhelming response saw the issue subscribed a staggering 213.41 times, with bids received for 234.59 crore shares against the 1.09 crore shares on offer. The retail segment was particularly strong, with subscriptions of 96.74 times, while non-institutional investors (NII) saw a remarkable 430.54 times subscription. Qualified institutional buyers (QIBs) also showed strong interest, subscribing 253.04 times.
KRN Heat Exchanger's IPO was entirely a fresh issue of 1.55 crore shares, without any offer-for-sale component. The minimum application size for retail investors was set at 65 shares, requiring an investment of ₹14,300. The allotment date was September 30.
The company plans to use the proceeds from the fresh issue for establishing a new manufacturing facility in Neemrana, Alwar, Rajasthan, under its wholly-owned subsidiary, KRN HVAC Products Pvt Ltd. The remaining funds will go towards general corporate purposes.
KRN Heat Exchanger specializes in manufacturing fin and tube-type heat exchangers and serves prestigious clients such as Daikin Airconditioning India and Schneider Electric. It has a strong export market, supplying products to countries including the USA, UAE, and Germany.
In FY24, KRN reported a revenue of ₹308.3 crore, with an EBITDA of ₹58.5 crore, translating to robust margins and a strong return on equity (ROE) of 29.7%. This promising debut sets a positive tone for the company’s future growth prospects in the competitive HVAC and refrigeration sector.
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