Shares of KRN Heat Exchanger and Refrigeration Ltd made a bumper debut on the National Stock Exchange (NSE) on 3 October 2024, opening at ₹480, a massive 118.18% premium over its ₹220 IPO price.
On the Bombay Stock Exchange (BSE), the stock opened at ₹470, marking a 113.64% gain from the issue price. This listing sent ripples through the market, making it one of the most successful IPOs in recent times.
KRN Heat Exchanger IPO Overview
The IPO, which ran from September 25 to September 27, 2024, was oversubscribed by an astonishing 213.41 times, with retail investors subscribing 96.74 times, non-institutional investors (NII) by 430.54 times, and qualified institutional buyers (QIBs) by 253.04 times.
The IPO was priced between ₹209-₹220 per share, offering 1.55 crore fresh shares, with no offer-for-sale component.
Why Did KRN Heat Exchanger IPO Perform So Well?
- Strong Demand: The IPO received bids for 234.59 crore shares against 1.09 crore shares on offer, reflecting robust demand from all investor segments.
- Investor Confidence: Analysts pointed out that the stellar subscription numbers and overwhelming interest from QIBs were indicators of high investor confidence.
- Sector Outlook: As a manufacturer of heat exchangers and refrigeration systems, KRN is positioned in a growing market, especially as energy efficiency and sustainable cooling solutions are gaining importance globally.
- Company Fundamentals: KRN Heat Exchanger is a strong player with a focus on innovative products, backed by a well-diversified business model and a planned expansion.
Use of IPO Proceeds
KRN intends to use the proceeds to fund its subsidiary, KRN HVAC Products Pvt Ltd, to establish a new manufacturing facility in Neemrana, Rajasthan. Additionally, a portion of the funds will be used for general corporate purposes.
Market Outlook Post-Listing
Given the 118% premium listing and bullish investor sentiment, analysts expect the stock to remain strong in the short term. Some experts predict further gains as institutional investors continue to show interest in companies with strong fundamentals and high-growth potential.
The heat exchanger and refrigeration industry is seeing an uptick, especially with the rising need for energy-efficient solutions, making KRN an attractive long-term bet.
MUST READ: KRN Heat Exchanger IPO Allotment Out: How to Check Status…
How to Check KRN Heat Exchanger IPO Allotment Status?
Investors can use the BSE website or the Bigshare Services portal, which acted as the IPO registrar, to check the KRN Heat Exchanger IPO allotment status.
Steps to Check via BSE:
- Visit the BSE IPO Allotment Status.
- Select ‘Equity’ as the issue type.
- Choose ‘KRN Heat Exchanger’ from the dropdown.
- Enter your Application Number or PAN Number.
- Verify with CAPTCHA and hit ‘Search.’
Steps to Check via Bigshare Services:
- Go to the Bigshare Services IPO Status.
- Select KRN Heat Exchanger Limited from the dropdown.
- Enter either Application No, PAN, or Beneficiary ID.
- Complete CAPTCHA verification and click ‘Submit.’
Click here to know more.
Disclaimer
The information provided in this article is for educational and informational purposes only. The stock market involves risks, and the performance of any stock is subject to market conditions and individual financial decisions. Readers should conduct their own research or consult with a financial advisor before making investment decisions. We are not responsible for any losses that may arise from decisions based on this content.