KRN Heat Exchanger IPO More Than Doubles On Listing
On Bombay Stock Exchange (BSE), it lists at Rs 470 with 113.64 per cent premium
The initial public offering (IPO) of KRN Heat Exchanger debuted on the bourses with a premium of 118 per cent.
The issue listed at Rs 480 per equity share on the National Stock Exchange (NSE) against its issue price of Rs 220 per equity share. Meanwhile, on Bombay Stock Exchange (BSE), it listed at Rs 470 with 113.64 per cent premium.
During its three-days subscription window, the issue allured subscription more than 200 times accounting for the bids worth over Rs 50,000 crore. Retail category was subscribed nearly 100 times, while the qualified institutions category received more than 250 times subscription.
The Rs 341.95 crore IPO consisted exclusively of fresh issues with the price band fixed at Rs 209 to 220 per equity share.
KRN Heat Exchanger and Refrigeration is expanding its customer base across geographies and enhancing its product range. The Indian HVAC market is on a strong growth trajectory, driven by rapid urbanisation, rising disposable incomes, government initiatives, and the increasing need for energy-efficient solutions amidst changing climatic conditions. The firm is well-positioned to leverage economic and industrial tailwinds, further strengthening its market position. Considering the premium, we advise participants to ‘book profits,’ said Sagar Shetty, Research Analyst, StoxBox.Holani Consultants was the book running lead manager, while Bigshare Services was the registrar to the offer.
The net proceeds of Rs 341.95 crore from the fresh issue will be utilised towards funding capital expenditure requirements for purchase of equipment and general corporate purposes.
Additionally, the funds will also be invested in the wholly owned subsidiary, KRN HVAC Products for setting up a new manufacturing facility.
Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
KRN Heat Exchanger and Refrigeration registered the revenue of Rs 313.54 crore in FY 23-24, while, the profit after tax (PAT) increased to Rs 39.07 crore in FY 24 against.
