KRN Heat Exchanger IPO listing date today; GMP, experts signal multibagger returns upon debut

KRN Heat Exchanger IPO Listing: KRN Heat Exchanger and Refrigeration shares are set to make their stock market debut today. The initial public offering (IPO) of KRN Heat Exchanger and Refrigeration received stellar demand from investors during its bidding period from September 25 to 27. KRN Heat Exchanger IPO listing date is today, October 3.

“Trading Members of the Exchange are hereby informed that effective from Thursday, October 3, 2024, the equity shares of KRN HEAT EXCHANGER AND REFRIGERATION LIMITED shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities,” said a notice on BSE.

KRN Heat Exchanger shares will be a part of Special Pre-open Session (SPOS) and will be available for trading from 10:00 AM.

Ahead of the listing, KRN Heat Exchanger shares were commanding a strong premium in the grey market led by heavy demand for its IPO shares. KRN Heat Exchanger IPO GMP today, or grey market premium today, signal a strong debut on stock exchanges. Analysts also expect multibagger listing gains for KRN Heat Exchanger IPO investors.

KRN Heat Exchanger IPO GMP

KRN Heat Exchanger IPO GMP today ahead of the listing is ₹243 per share, according to stock market analysts. This indicates that KRN Heat Exchanger shares are trading higher by ₹243, or at a premium of 110% to their issue price in the grey market.

KRN Heat Exchanger IPO Listing Price

Considering the IPO GMP today, the estimated KRN Heat Exchanger shares listing price is ₹463 apiece, a premium of 110% to the IPO price of ₹220 per share.

“KRN Heat Exchanger and Refrigeration Ltd was able to garner stellar demand from the market, as the issue was subscribed by over 213x. The issue is all set to get listed on the bourses today with an expected listing gain of over 100%,” said Sagar Shetty, Research Analyst, StoxBox.

KHERL specializes in manufacturing fin and tube type heat exchangers for the HVAC&R industry. Financially, for FY24, the company reported revenue of ₹3,083 million, EBITDA of ₹585 million, and PAT of ₹391 million, with EBITDA and PAT margins at 18.9% and 12.6%, respectively. The company also achieved ROE of 29.7% and ROCE of 24.2%, with a debt-to-equity ratio of 1x.

“The HVAC market in India is growing rapidly due to urbanization, rising incomes, government initiatives, and the demand for energy-efficient solutions. KHERL is well-positioned to capitalize on these trends and strengthen its market position. We thus advise participants who have been allotted with the issue to book profit from the listing gains. We will reassess our recommendation if the company's financial situation shows signs of improvement in the future,” Shetty added.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd believes the bumper investor demand for KRN Heat Exchanger IPO was on the back of reasonable valuations, industry demand, and an opportunity invest in a leading OEMs supplier and manufacturer of specialized fin and tube-type heat exchangers supplying to marquee clients like Daikin, Blue Star, Voltas, Carrier Aircon across domestic, commercial and industrial markets.

“Considering bumper subscription demand and market sentiments, there is a high possibility and an indication of a blockbuster market debut, which can double allotted investors’ money on day one of listings. For allotted investors, we recommend book profits as we believe post listing the valuations can over stretch on a higher side discounting all the medium term business growth visibility,” Tapse said.

For non-allottees, he said it would be better to wait and watch for the price to settle. 

KRN Heat Exchanger IPO Details

KRN Heat Exchanger and Refrigeration Ltd is a manufacturer of fin and tube-type heat exchangers.

KRN Heat Exchanger IPO opened for subscription on September 25 and closed on September 27. The IPO allotment was finalized on September 30 and the KRN Heat Exchanger IPO listing date is today. KRN Heat Exchanger shares will be listed on BSE and NSE.

The company raised ₹341.95 crore from the book-built issue which was entirely a fresh issue of 1.55 crore equity share. KRN Heat Exchanger IPO price band was ₹209 to ₹220 per share.

KRN Heat Exchanger IPO was subscribed 213.41 times. The public issue had received 96.74 times bids in the retail category, 253.04 times in the QIB category, and 430.54 times in the NII category.

The company proposes to utilise the net proceeds from fresh issue to invest in the wholly owned subsidiary, KRN HVAC Products Pvt Ltd for setting up a new manufacturing facility and for general corporate purposes.

KRN Heat Exchanger IPO was heavily oversubscribed during its bidding period. The issue was booked 214.42 times in total. It received 98.29 times subscription in the Retail Individual Investors (RIIs) category and 253.04 times in the Qualified Institutional Buyers (QIBs) category. The Non Institutional Investors (NII) category was booked 431.63 times.

Holani Consultants Private Limited is the book running lead manager of the KRN Heat Exchanger IPO, while Bigshare Services Pvt Ltd is the IPO registrar.

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