KRN Heat Exchanger plans to use the IPO funds to invest in its subsidiary, KRN HVAC Products Pvt Ltd. The goal is to establish a new manufacturing facility in Neemrana, Alwar, Rajasthan. Additionally, some proceeds will be allocated for general corporate purposes, enhancing the company’s overall operations. Let’s learn about KRN Heat Exchange Share.
Description
With 65 shares per lot, KRN Heat Exchange Share closed with strong demand and growth potential.
Key Facts
- Investors needed a minimum investment of ₹14,300 for 65 shares.
- KRN Heat Exchanger’s IPO raised ₹341.95 crore and closed on September 27, 2024.
- Shares were listed on October 3, 2024, at ₹470, a 113.64% increase from the issue price.
- The IPO received strong demand, with a ₹100.10 crore anchor portion.
About KRN Heat Exchange Share
- KRN Heat Exchanger launched its IPO from September 25 to 27, 2024. The company aimed to raise ₹341.95 crores, with the price range set between ₹209 and ₹220 per share. Investors were required to apply for at least 65 shares, amounting to a minimum investment of ₹14,300.
- The IPO received significant attention, with the issue being subscribed 213.41 times by the end of the bidding process. The shares were listed on both the BSE and NSE on October 3, 2024, at a premium of 113.64%, opening at ₹470 listing price, reflecting strong investor interest.
Influencing Factors
- The KRN Heat Exchanger IPO’s success was driven by multiple factors. Firstly, investor sentiment was positive, with shares listed at a 113.64% premium on October 3, 2024, at ₹470 per share. The retail category saw heavy interest, with a 96.74 times subscription, while Qualified Institutional Buyers (QIB) subscribed 253.04 times and Non-Institutional Investors (NII) 431.63 times, indicating strong institutional backing.
- The company raised ₹100 crores from anchor investors before the public issue, showcasing its solid financial appeal. Revenue growth, from ₹156 crores in FY22 to ₹308 crores in FY24, a 25% CAGR, demonstrated excellent business potential and strong institutional backing. The IPO subscription also reflected the company’s robust order book and customer loyalty.
- Strong cash flow and liquidity were other contributing factors. Additionally, retail investors showed keen interest, with a 98.29 times subscription in their segment. These factors, combined, led to a highly successful IPO for KRN Heat Exchanger.
Risk Management Rating and Factors
- KRN Heat Exchanger Risk Management Rating stands at 6/10. Positive factors contributing to this rating include its strong industry presence, diversified product range, and established customer relationships. The company’s focus on research and development also helps it stay competitive.
- However, risks remain, such as its dependence on HVAC and refrigeration industries, exposure to market fluctuations, and potential supply chain disruptions. Its operations are mainly India-focused, limiting geographic diversification.
- Neutral factors like its moderate debt-to-equity ratio and standard industry practices neither improve nor diminish its rating. Overall, the balance of these market fluctuations risks and other elements results in a moderate risk rating.
KRN Heat Exchange Share Final Verdict
Experts like Dilip Davda recommend investing in the KRN Heat Exchanger IPO, citing its promising market position and expansion plans. The KRN Heat Exchange(https://www.youtube.com/watch?v=kJ9HhKJkEUw) received analysts ratings of 4.5/5, indicating confidence in its potential, especially in the heat exchange products and fin tubes segments.
