KRN Heat Exchanger Soars 118% on IPO Debut: Should You Book Profits or Hold for More Gains?
KRN Heat Exchanger made an impressive debut on the stock market, jumping 118% above its issue price after strong demand, with its IPO being subscribed more than 213 times. After the initial listing, the stock rose by another 1% and is currently trading at ₹475.85 on the BSE.
Strong Position in the Market
KRN Heat Exchanger specializes in making fin and tube-type heat exchangers used in HVAC (heating, ventilation, air conditioning, and refrigeration) systems. The company is known for its high-quality products that meet international standards. This, along with quick delivery times and good relationships with top clients, has helped it grow steadily.
Analyst Advice
According to Shivani Nyati, Head of Wealth at Swastika Investmart, KRN Heat Exchanger has strong fundamentals and demand in the market. Even though it’s hard to directly compare its valuation with other companies (because no similar companies are listed), Nyati suggests investors could consider selling part of their shares to lock in profits while holding onto the rest for potential future gains.
Growth Plans
KRN Heat Exchanger plans to use the money from the IPO to invest in its wholly-owned subsidiary, KRN HVAC Products, to build a new manufacturing facility in Neemrana, Rajasthan. The remaining funds will be used for general business purposes.
Product Range
The company manufactures various heat exchangers made mainly from copper and aluminum, which are customized to different shapes and sizes (from 5 mm to 15.8 mm in diameter) based on customer needs. Their products include condenser coils, evaporator units, fluid and steam coils, and sheet metal parts for different cooling applications.
Financial Performance
In FY24, KRN’s revenue grew by 25% year-on-year to ₹308 crore, while its net profit increased by 22% to ₹39 crore. Holani Consultants was the sole book-running lead manager for the IPO.
With its strong financials and growth potential, KRN Heat Exchanger is a company to watch in the coming months.
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