Back
PremiumKRN Heat Exchanger Share Price Updates: KRN Heat Exchanger share price made a blockbuster debut on the bourses today, Thursday, October 3. The stock ended listing day at ₹473.99 on NSE, a 115.45% premium to the IPO price of ₹220, and at ₹478.45 on BSE, a 117.48% premium. In a quiet subdued market, KRN Heat Exchanger share price could sustain itself above its IPO price witnessing slight fluctuations during the session.
On NSE, KRN Heat Exchanger share price opened at ₹480 per share, 118.18% higher than the issue price of ₹220. On BSE, KRN Heat Exchanger share price today opened at ₹470 apiece, up 113.64% than the issue price.
On Wednesday, September 25, the public subscription for KRN Heat Exchanger and Refrigeration Ltd, based in Rajasthan, began and concluded on Friday, September 27. KRN Heat Exchanger raised ₹100 crore from anchor investors.
KRN Heat Exchanger IPO includes a fresh issue of 1,55,43,000 equity shares valued at ₹342 crore at the upper end of the price band.
On Friday, the IPO bidding concluded with an overwhelming subscription of 214.42 times, as bids were placed for 2,35,71,39,005 shares against the 1,09,93,000 shares available.
The non-institutional investors category experienced an exceptional subscription of 431.63 times, while the retail individual investors (RIIs) portion was subscribed 98.29 times. The QIB category saw a subscription of 253.04 times.
The initial public offer of KRN Heat Exchanger and Refrigeration Ltd was fully subscribed within minutes of opening for share sale on Wednesday and finally ended with 23.73 times subscription.
The company supplies fin and tube-type heat exchangers to the heat ventilation air conditioning and refrigeration industry.
The company conducts all manufacturing activities at its integrated manufacturing facility, comprising of two industrial plots situated in the RIICO Industrial Area, Neemrana, Rajasthan.
Holani Consultants serves as the sole book-running lead manager for the company's public offering.
KRN Heat Exchanger share price ended listing day at ₹473.99 on NSE, a 115.45% premium to the IPO price of ₹220, and at ₹478.45 on BSE, a 117.48% premium. In a quiet subdued market, KRN Heat Exchanger share price could sustain itself above its IPO price witnessing slight fluctuations during the session.
The stock was trading at ₹480 per share on NSE, up 0.17% at 14:52 IST, and at ₹483.20 per share on BSE, up 2.81%.
More than 33% of the company's revenue comes from its top customer, Daikin Air Conditioning India Pvt Ltd. Additionally, the top 5 customers collectively contribute approximately 55% of the revenue, showing that the business relies heavily on a small number of customers. Any decrease in orders or delays from these customers could have a negative impact on the company's financial performance.
Some of the main risks for the company include relying on a small number of key customers, lacking long-term agreements with any customers, depending on a limited number of suppliers, having a limited operating history, and dealing with highly volatile and price-sensitive raw materials.
As per a report from a brokerage, KRN financials have experienced a rise in revenue from 156 Cr in FY22 to 308 Cr in FY24, representing a CAGR of 25%, driven by a robust order book and repeat orders from major customer segments due to its strong relationships. Alongside the revenue growth, EBITDA and PAT margins have also increased, attributed to enhancements in manufacturing processes, improved capabilities for new product development, and infrastructure upgrades to meet the high demands of the heat exchanger industry.
Nestled among the prestigious RIICO industrial zones of Neemrana, Rajasthan, the KRN manufacturing plant is well equipped and capable of conducting end-to-end production activities. The company's ability to satisfy the specific and demanding needs of their clients is made possible by its experience in precise engineering, strategically placed production facilities, attention to design, and use of cutting-edge, reasonably priced manufacturing technologies.
Arun Kejriwal, the founder of Kejriwal Research and Investment Services, said that KRN Heat Exchanger share price opened at nearly double the issue price and experienced an initial drop, but it has now stabilised, holding at around the listing price. The trading volume has already exceeded 1.8 crore shares, indicating speculation rather than delivery-based buying. It will be crucial to observe the market activity towards the end of the day, whether investors choose to exit their positions. Given this situation, investors may be hesitant to short selling.
"KRN Heat Exchanger 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," advised Sagar Shetty.
“Despite markets selloff, KRN Heat Exchanger listing was in line with our expectations which was on the back of bumper subscription response from all sets of investors. For allotted investors, we had recommended to book profits as we believe post listing the valuations can over stretch on a higher side discounting all the medium term business growth visibility. For non-allottees it would be better to wait and watch for the price to settle," said Tapse.
In the fiscal year ending on March 31, 2024, they boasted a customer base exceeding 115 clients, spread across various regions. Their strong and well-established connections with the majority of their clients, stemming from their global diversity, offer them the chance to enter new international markets and grow their clientele. Among their esteemed clients are Daikin Airconditioning India Pvt Ltd, Schnieder Electric IT Business India Pvt Ltd, Kirloskar Chillers Pvt Ltd, Blue Star Ltd, Climaventa Climate Technologies Pvt Ltd, and Frigel Intelligent Cooling Systems India Pvt Ltd.
Fin and tube heat exchangers are produced by KRN Heat Exchanger specifically for the HVAC (heat, ventilation, air conditioning) and refrigeration industry. They mostly use copper and aluminum as non-ferrous metals to make their heat exchangers. Condenser coils, evaporator units, evaporator coils, header/copper components, fluid and steam coils, and sheet metal parts are all offered by the company.
KRN produces heat exchangers in a range of sizes and forms based on client requests and/or market need. They manufacture heat exchanger tubes with a diameter that varies from 5.88 mm to 15.88 mm. Their products are highly suited for wide variety of air conditioning, heating and ventilation, refrigeration, and process cooling applications.
“KRN Heat Exchangers and Refrigeration Limited, saw a spectacular offering with a 118% increase on its issue price of 220 and became listed at 481. Even though the IPO's valuation seems reasonable, it is difficult to draw direct comparisons because no peers have been listed. Nonetheless, investors may book a portion of the profit and keep the remaining amount because of KRN Heat Exchangers' excellent fundamentals and market demand," advised Shivani.
The stock was trading at ₹470.72 per share on NSE, marking nearly 2% decrease at 10:18 IST, and at ₹471.65 per share on BSE, up 0.51%.
KRN Heat Exchanger share price made a bumper debut on the bourses today. On NSE, KRN Heat Exchanger share price opened at ₹480 per share, 118.18% higher than the issue price of ₹220. On BSE, KRN Heat Exchanger share price today opened at ₹470 apiece, up 113.64% than the issue price.
“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," said Prashanth Tapse.
According to Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, the IPO's valuation appears fair, the absence of listed peers makes a direct comparison challenging. However, KRN Heat Exchangers' strong fundamentals and market demand suggest a promising outlook for the listing.
The IPO's impressive subscription of 213.41 times and a substantial grey market premium (GMP) of ₹250 (113.64%) highlight strong investor interest.
KRN Heat Exchanger IPO grey market price is +248. This indicates KRN Heat Exchanger share price were trading at a premium of ₹248 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of KRN Heat Exchanger share price was indicated at ₹468 apiece, which is 112.73% higher than the IPO price of ₹220.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
Let’s get started
Our team will get back to you shortly
