KRN Heat Exchanger IPO Listing Today

KRN Heat Exchanger and Refrigeration Limited, a manufacturer of fin and tube-type heat exchangers, made a stellar debut on the Indian stock market on Thursday, 3rd October 2024, with its shares listing at a significant premium to the issue price on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Listing Details

• Listing Price: KRN Heat Exchanger shares were listed at ₹480 per share on the NSE and ₹470 per share on the BSE, marking an exceptional start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price. KRN Heat Exchanger had set its IPO price band from ₹209 to ₹220 per share, with the final issue price being fixed at the upper end of ₹220.
• Percentage Change: The listing price of ₹480 on the NSE translates to a premium of 118.18% over the issue price of ₹220. On the BSE, the opening price of ₹470 represents a premium of 113.64%.

First-Day Trading Performance

• Opening vs. Latest Price: Following its strong opening, KRN Heat Exchanger's share price experienced some volatility. By 10:06 AM, the stock was trading at ₹470.01 on the NSE, down 2.08% from its opening price but still 113.64% above the issue price.
• Market Capitalisation: As of 10:06 AM, the company's market capitalisation stood at ₹2,921.42 crore.
• Trading Volume: The traded volume was 134.29 lakh shares with a traded value of ₹637.66 crore, indicating significant investor interest on the first day of listing.

Market Sentiment and Analysis

• Market Reaction: The market reacted overwhelmingly positively to KRN Heat Exchanger's listing. The strong listing premium indicates robust demand and investor confidence in the company's prospects.
• Subscription Rate: The IPO was massively oversubscribed by 213.41 times, with NIIs leading at 430.54 times, followed by QIBs at 253.04 times, and retail investors at 96.74 times.
• Price Band: The stock hit a high of ₹497.89 and a low of ₹450 during early trading, reflecting significant investor interest and volatility.

Growth Drivers and Challenges

Expected drivers of future performance:

• Leading manufacturer in the growing HVAC&R industry
• Presence in 20 states and 2 union territories in India, with exports to multiple countries
• Strong client base including major players like Daikin, Blue Star, and Voltas
• Planned expansion with a new manufacturing facility

Potential challenges:

• Competitive HVAC&R manufacturing sector
• Potential volatility in raw material prices
• Dependence on key clients in the industry

Utilisation of IPO Proceeds

KRN Heat Exchanger plans to use the funds for:

• Setting up a new manufacturing facility through its wholly-owned subsidiary
• General corporate purposes

Financial Performance

The company has demonstrated strong financial growth:

• Revenue increased from ₹249.89 crore in FY2023 to ₹313.54 crore in FY2024
• Profit After Tax (PAT) rose from ₹32.31 crore in FY2023 to ₹39.07 crore in FY2024

As KRN Heat Exchanger and Refrigeration begins its journey as a listed entity, market participants will closely monitor its ability to leverage its strong position in the HVAC&R industry and execute its expansion plans to drive future growth and shareholder value. The stellar listing and overwhelming subscription rates suggest extremely positive market sentiment towards the company's prospects in the specialized heat exchanger manufacturing sector.