KRN Heat Exchanger’s Impressive Market Debut Marks 118.2% Listing Premium

KRN Heat Exchanger and Refrigeration Ltd, based in Rajasthan, made a remarkable debut on the stock market today, listing at a 118.2% premium over its issue price. The company’s shares participated in the Special Pre-open Session (SPOS) and became available for trading at 10:00 AM IST.

The Initial Public Offering (IPO) process for KRN, managed by Holani Consultants, witnessed significant interest. Public subscription commenced on September 25th and concluded on September 27th. The IPO was met with overwhelming demand, being subscribed 214.42 times with bids for 2,35,71,39,005 shares against the 1,09,93,000 available shares. The company managed to raise ₹100 crore from anchor investors during this process.

The performance of KRN’s share on the National Stock Exchange (NSE) saw it opening at ₹480, a substantial increase from the issue price of ₹220, and on the Bombay Stock Exchange (BSE), it opened at ₹470 per share. At 10:18 AM IST, shares were trading at ₹470.72 on NSE and ₹471.65 on BSE, reflecting minor fluctuations.

Experts like Arun Kejriwal, founder of Kejriwal Research and Investment Services, noted that despite some initial volatility, the stock price had stabilized above the issue price. Kejriwal pointed out the high trading volume, exceeding 1.8 crore shares, suggesting speculative activity rather than delivery-based buying.

Investment analysts have offered various perspectives on the future of KRN shares. Sagar Shetty advised profit booking from the listing gains, while Prashanth Tapse of Mehta Equities highlighted the expected listing success due to high subscription demand, recommending a cautious approach for non-allotted investors.

The company’s operations revolve around supplying fin and tube-type heat exchangers for the HVAC and refrigeration industry. These products are manufactured in an integrated facility situated in the RIICO Industrial Area, Neemrana, Rajasthan, and include various components such as condenser coils and evaporator units tailored to customer requirements.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, acknowledged the strong fundamentals and market demand that support KRN’s promising outlook despite the absence of listed peers for comparison. The IPO’s listing success is supported by a substantial grey market premium of ₹250, which indicated robust investor interest.

The company serves a diverse client base of over 115 clients, including notable names such as Daikin Airconditioning India Pvt Ltd and Schneider Electric IT Business India Pvt Ltd, among others.