Bumper Listing! KRN Heat Exchanger shares list at ₹480 on NSE, an over 118% premium to IPO price

KRN Heat Exchanger and Refrigeration IPO listing: Shares of KRN Heat Exchanger and Refrigeration made a bumper debut on the bourses on Thursday, 3 October, as they listed at ₹480 on NSE, a premium of 118.18 per cent over the IPO price of ₹220. Meanwhile, on BSE, the stock listed at ₹470, up 113.64 per cent over the issue price.

The initial public offering (IPO), valued at ₹341.95 crore, was open for subscription from September 25 to September 27. The IPO was priced in the range of ₹209-220 per share.

Following the three-day bidding process, KRN Heat Exchanger IPO closed with an overwhelming demand as the issue was subscribed 213.41 times. The IPO received bids for 234.59 crore shares against 1.09 crore shares on offer. The retail investor segment saw a subscription of 96.74 times, while the non-institutional investors (NII) category was booked a massive 430.54 times. Meanwhile, the qualified institutional buyers (QIBs) quota was subscribed 253.04 times.

About KRN Heat Exchanger IPO

The KRN Heat Exchanger IPO was entirely a fresh issue of 1.55 crore shares. There was no offer-for-sale component in the IPO. The minimum application size for retail investors was set at 65 shares, requiring an investment of ₹14,300. Investors could bid for a minimum of 65 shares and in multiples thereof. The IPO allotment date was September 30.

“KRN Heat Exchanger and Refrigeration Ltd was able to garner stellar demand from the market, as the issue was subscribed 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.

KRN Heat Exchanger IPO reserved 20% of the issue for QIBs, 15% for NIIs, and 35% for retail investors.

The company proposes to utilise the net proceeds from the fresh issue for two primary purposes: investing in KRN HVAC Products Pvt Ltd, a wholly-owned subsidiary, to establish a new manufacturing facility in Neemrana, Alwar, Rajasthan, and for general corporate purposes.

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

About the Company

KRN Heat Exchanger and Refrigeration Ltd specialises in manufacturing fin and tube-type heat exchangers, including copper and aluminium fins, copper tubes, water coils, condenser coils, and evaporator coils. The company produces heat exchanger tubes in a variety of shapes and sizes, ranging from 5 mm to 15.88 mm in diameter. These products cater to the domestic, commercial, and industrial HVAC&R (Heating, Ventilation, Air Conditioning, and Refrigeration) sectors. 

KRN serves notable clients like Daikin Airconditioning India, Schneider Electric, Kirloskar Chillers, Blue Star, Climaventa Climate Technologies, and Frigel Intelligent Cooling Systems. Additionally, it exports to countries such as the UAE, USA, Italy, Saudi Arabia, Norway, Czech Republic, Germany, and the UK.

In FY24, the company reported a revenue of ₹308.3 crore, with an EBITDA of ₹58.5 crore and a PAT of ₹39.1 crore, reflecting EBITDA and PAT margins of 18.9 per cent and 12.6 per cent, respectively. The company also delivered strong financial metrics, achieving a return on equity (ROE) of 29.7 per cent and a return on capital employed (ROCE) of 24.2 per cent, alongside maintaining a debt-to-equity ratio of 1x.