KRN Heat Exchanger is making its stock market debut today after its IPO received massive demand from investors between September 25-27. The company’s shares will start trading on October 3, with trading beginning at 10:00 AM.
Ahead of its listing, KRN Heat Exchanger shares have been showing a strong grey market premium (GMP) of ₹243 per share, indicating a potential listing price of ₹463 per share. This suggests the stock could list at a 110% premium over its issue price of ₹220 per share.
Experts are expecting the IPO to deliver “multibagger” returns, with some predicting investors may double their money on the very first day of trading.
Why Investors Are Excited About KRN Heat Exchanger
KRN Heat Exchanger manufactures specialized heat exchangers for big names like Daikin, Blue Star, Voltas, and Carrier Aircon. The company’s financials look strong, reporting ₹3,083 million in revenue for FY24, with a net profit of ₹391 million. Their profit margins are also solid, with an EBITDA margin of 18.9% and a PAT margin of 12.6%.
The HVAC market in India is booming due to rising urbanization and demand for energy-efficient solutions. This has placed KRN in a good spot to capitalize on market growth.
Given the high demand for the IPO, experts recommend investors who received shares to take advantage of the listing day gains and book profits. However, non-allottees should wait for the price to stabilize before making any move.
Key Details of KRN Heat Exchanger IPO
- The IPO was open from September 25 to 27, priced between ₹209 and ₹220 per share.
- It was oversubscribed by 213 times, with heavy interest from retail and institutional investors.
- The company raised ₹341.95 crore to invest in a new manufacturing facility and for general corporate purposes.
Holani Consultants acted as the lead manager for this IPO, while Bigshare Services managed the IPO process.
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