Considering the upper price band of Rs 220, the stock is expected to fetch multibagger gains to investors of over 107%.
However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
The initial public offer (IPO) of KRN Heat Exchanger IPO received robust response from investors with an overall subscription of over 200 times at close.
The company proposes to use the net proceeds from the IPO for investment in wholly-owned subsidiary KRN HVAC Products for setting up a new manufacturing facility at Neemrana, Alwar, in Rajasthan. The remaining amount will be used for other general corporate purposes.
KRN Heat Exchanger and Refrigeration (KRN) specializes in manufacturing fin and tube type heat exchangers for the heat ventilation air conditioning and refrigeration (HVAC&R) industry and their products are primarily made from non-ferrous metals such as copper and
aluminum.
The company customizes heat exchangers in various shapes and sizes to meet customer requirements and market demand with diameters ranging from 5 mm to 15.8 mm.
The product range includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils and sheet metal parts for various cooling applications.
Heat exchangers transfer thermal energy from one fluid to another, while ensuring that the fluids do not mix. This process is facilitated by conduction, enabling the heat exchanger to heat or cool a substance.
In FY24, the company’s revenue from operations increased 25% year-on-year to Rs 308 crore, while net profit after tax rose 22% year-on-year to Rs 39 crore.
Holani Consultants acted as the sole book-running lead manager for the IPO.