KRN Heat Exchanger and Refrigeration Ltd had an impressive debut on the stock market on 3rd October. The company’s shares were listed at ₹480 on the NSE, marking a 118.18% increase from its IPO price of ₹220. On the BSE, the shares opened at ₹470, a 113.64% premium over the issue price.
The company’s IPO, valued at ₹341.95 crore, was open for subscription from 25th to 27th September. The price range was set between ₹209 and ₹220 per share. The IPO saw huge demand, being subscribed 213.41 times overall. Retail investors subscribed 96.74 times, while non-institutional investors (NII) subscribed 430.54 times. Qualified institutional buyers (QIBs) subscribed 253.04 times.
The KRN IPO consisted entirely of a fresh issue of 1.55 crore shares, with no offer-for-sale component. Retail investors needed to apply for at least 65 shares, which required an investment of ₹14,300. The shares were allotted on 30th September.
According to Sagar Shetty, a research analyst at StoxBox, KRN Heat Exchanger and Refrigeration Ltd received strong market interest, with the IPO being subscribed over 213 times. The shares were expected to deliver over 100% listing gains.
The company plans to use the funds from the IPO for two main purposes: investing in KRN HVAC Products Pvt Ltd, its wholly-owned subsidiary, to build a new manufacturing facility in Neemrana, Rajasthan, and for general corporate needs.
KRN Heat Exchanger and Refrigeration Ltd manufactures heat exchangers, including fin and tube-type exchangers like copper and aluminium fins and copper tubes. Their products are used in HVAC&R systems (Heating, Ventilation, Air Conditioning, and Refrigeration) and serve both domestic and international clients. Some notable clients include Daikin, Blue Star, and Kirloskar, with exports to countries such as the USA, UAE, Italy, and Germany.
In FY24, KRN reported a revenue of ₹308.3 crore, with a profit after tax of ₹39.1 crore. The company also achieved strong financial metrics, with a return on equity of 29.7% and a return on capital employed of 24.2%.
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