October 3, 2024
New Delhi, India
IPO Listing
Shares of KRN Heat Exchanger and Refrigeration Ltd made an impressive debut on the stock market today, listing at ₹480 on NSE, a remarkable 118.18% premium over its IPO price of ₹220. The stock also listed at ₹470 on BSE, up 113.64% from its issue price.
Key Highlights of the IPO:
- IPO Size: ₹341.95 crore
- IPO Price Band: ₹209-220 per share
- Subscription: 213.41 times
- Retail Investors: 96.74 times
- Non-Institutional Investors (NII): 430.54 times
- Qualified Institutional Buyers (QIB): 253.04 times
- Issue Opened: September 25, 2024
- Issue Closed: September 27, 2024
- IPO Allotment Date: September 30, 2024
Strong Market Response:
The IPO received an overwhelming response, with bids for 234.59 crore shares against 1.09 crore shares on offer. Retail investors subscribed to the issue 96.74 times, while the NII category saw massive demand, booked 430.54 times. The QIB quota was subscribed 253.04 times.
Use of IPO Proceeds:
KRN Heat Exchanger plans to use the net proceeds from the IPO to invest in its wholly owned subsidiary, KRN HVAC Products Pvt Ltd, for setting up a new manufacturing facility in Neemrana, Rajasthan, and for general corporate purposes.
About KRN Heat Exchanger:
KRN Heat Exchanger is a leading manufacturer of fin and tube-type heat exchangers, producing copper and aluminium fins, copper tubes, condenser coils, evaporator coils, and other HVAC&R products. The company serves major clients like Daikin Airconditioning India, Schneider Electric, Blue Star, and exports to markets including the UAE, USA, Italy, and Germany.
Financial Performance:
In FY24, KRN Heat Exchanger 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% and 12.6%, respectively. The company also achieved a strong return on equity (ROE) of 29.7% and return on capital employed (ROCE) of 24.2%.
KRN Heat Exchanger’s IPO debut has exceeded market expectations with a listing gain of over 100%, driven by strong investor demand. The company’s solid financials and strategic expansion plans position it well in the HVAC&R sector.
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