KRN Heat Exchanger and Refrigeration Ltd made a remarkable debut on the stock market, listing at a 113% premium on the BSE at ₹470 and a 118% premium on the NSE at ₹480. The share price climbed further, reaching highs of ₹497.89 on the NSE and ₹497.00 on the BSE.
Strong Investor Interest
Analysts had a positive outlook on the company, highlighted by strong investor interest during the IPO. The high Grey Market Premium (GMP) indicated potential gains, reflecting enthusiasm for KRN Heat Exchanger.
Analyst Recommendations
Anand Rathi analysts recommended a “SUBSCRIBE for LONG TERM” rating on the IPO, citing the company’s established history and plans for global expansion. They noted that the growing demand in the HVAC industry could boost KRN’s revenue and profit margins over time. However, they also pointed out that current valuations reflect short-term prospects. At the upper price band, the company has an implied market cap of around ₹1,310 crore, with a Price-to-Earnings (P/E) ratio of 33.5 for FY24, which they believe is fully priced.
Key Strengths
Research by KRChoksey highlighted several strengths of KRN Heat Exchanger:
- Long-term relationships with major clients
- Effective quality control processes
- Partnerships with companies like Daikin Airconditioning India, Schneider Electric, Kirloskar Chillers, and Blue Star
- An established manufacturing facility
- Consistent financial performance
Global Reach
KRN Heat Exchanger is recognized both in India and internationally. For FY24, the company exported products to 14 countries and marketed them in various Indian states, with significant demand in North America and Europe.
Strong Demand Indicated by IPO
The KRN Heat Exchanger IPO saw overwhelming interest, receiving 213.41 times subscription overall. The retail segment was oversubscribed by 96.74 times, while the Qualified Institutional Buyer (QIB) and Non-Institutional Investor (NII) categories received bids of 253.04 times and 430.54 times, respectively. The strong GMP suggested that market players expected significant gains upon listing.
The GMP for KRN Heat Exchanger was ₹230, showing a slight decline from ₹270 at the beginning of the subscription period but remained strong. Overall, current market trends indicate a continued positive outlook for KRN Heat Exchanger shares.
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