KRN Heat Exchanger and Refrigeration Limited made a spectacular entry into the stock market on October 03, 2024, with its shares listing at ₹480 on the NSE. This represents a remarkable 118.18% premium over the IPO price of ₹220. On the BSE, shares opened at ₹470, reflecting an increase of 113.64%.

This Book Built Issue amounted to ₹341.50 crores and comprised entirely of a fresh issue of 155.23 lakh shares. The subscription period for the KRN Heat Exchanger IPO was from September 25 to September 27, 2024, with the allotment date expected to be finalized around September 30, 2024.

Company Overview

KRN Heat Exchanger and Refrigeration Limited specializes in manufacturing and exporting aluminium and copper fins as well as copper tube heat exchangers, water coils, and condenser and evaporator coils. The company supplies its products to notable OEMs in the heating, ventilation, air conditioning, and refrigeration (HVAC&R) industry, establishing a strong market presence.

Mr. Santosh Kumar Yadav, the Chairman and Managing Director, leads the company with over 19 years of extensive experience in manufacturing heat exchangers and refrigeration units. His operational expertise has significantly contributed to KRN’s success in the industry.

IPO Details and Subscription

The KRN Heat Exchanger IPO attracted considerable interest, being oversubscribed by 110.23 times on its final subscription day. The Grey Market Premium (GMP) was anticipated to be in the range of ₹125 to ₹130, indicating strong demand for the shares prior to the listing.

The price band for the IPO was set between ₹209 and ₹220, with a minimum lot size of 65 shares. Retail investors needed to make a minimum investment of ₹14,300, while High-Net-Worth Individuals (HNIs) were required to invest at least ₹2,00,200 for 14 lots of 910 shares.

Holani Consultants Private Limited served as the book-running lead manager for the IPO, while Bigshare Services Private Limited acted as the registrar for the issue.

How to Check Allotment Status

Investors can verify their allotment status by following these steps:

Visit the IPO allotment status page.

Select KRN Heat Exchanger & Refrigeration Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to check your allotment status.

Financial Highlights

KRN Heat Exchanger’s financial performance has been impressive over the past three fiscal years. For Fiscal 2024, 2023, and 2022, the company reported revenues of ₹31,354.12 lakhs, ₹24,988.51 lakhs, and ₹15,822.53 lakhs, respectively. The EBITDA figures reflect substantial growth, with ₹5,845.24 lakhs in FY24 compared to ₹1,693.56 lakhs in FY22.

The Profit After Tax for the same periods was ₹3,906.86 lakhs, ₹3,231.35 lakhs, and ₹1,059.04 lakhs, illustrating KRN's strong profitability trajectory.

Valuation Metrics

The pre-issue EPS for KRN stands at ₹8.69, while the post-issue EPS is expected to be ₹6.28. The pre-issue P/E ratio is 25.31x, with a post-issue P/E ratio of 35.03x, indicating competitive pricing compared to the industry averages. The Return on Capital Employed (ROCE) and Return on Equity (ROE) for FY24 are reported at 31.21% and 40.86%, respectively, suggesting strong financial health and effective capital management.

Investment Recommendation

Given the robust financial performance and strong market debut, it is recommended that investors apply to the KRN Heat Exchanger and Refrigeration Limited IPO for potential listing gains and long-term investment opportunities. The positive market reception and favorable financial metrics suggest a promising future for the company.

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In light of the current market dynamics, KRN Heat Exchanger is well-positioned for growth, and careful consideration of investment strategies is advised for all investors.