KRN Heat Exchanger and Refrigeration Ltd made a remarkable debut on the stock exchanges, listing with a staggering premium of 113% on the BSE at ₹470 and 118% on the NSE at ₹480. Following its debut, the share price continued to rise, reaching impressive highs of ₹497.89 on the NSE and ₹497.00 on the BSE, reflecting strong investor sentiment.
Analysts have consistently expressed optimism regarding the long-term prospects of KRN Heat Exchanger and Refrigeration Ltd. The overwhelming demand during the IPO, characterized by substantial subscriptions, highlighted significant investor interest. Furthermore, the Grey Market Premium (GMP) indicated that the market anticipated considerable gains for the company’s shares.
Analyst Views
Analysts from Anand Rathi have given a “SUBSCRIBE for LONG TERM” rating on the IPO. They highlighted the company’s established history, its ambitions for global expansion, and the increasing demand in the HVAC industry. These factors could positively impact KRN’s revenue and profit margins over time, making it a compelling choice for long-term investors.
However, in the short term, analysts noted that the current valuations might already reflect near-term prospects. Anand Rathi estimated that at the upper price band, the company’s implied market capitalization stands at approximately ₹1310 Crore, with a Price to Earnings (P/E) ratio of 33.5 times for FY24. This valuation seems fully priced, suggesting caution for short-term investors.
Key Growth Drivers
KRChoksey Research identified several key strengths that could drive KRN Heat Exchanger’s growth, including:
– Long-standing business relationships with prominent clientele.
– Effective quality control measures ensuring product reliability.
– Strategic partnerships with leading companies such as Daikin Airconditioning India Private Limited, Schneider Electric IT Business India Private Limited, Kirloskar Chillers Private Limited, Blue Star Limited, and Climaventa Climate Technologies Private Limited.
– An established manufacturing facility that supports production efficiency.
– A consistent track record of financial performance, underscoring the company’s stability.
About KRN Heat Exchanger: Market Presence and Global Footprint
KRN Heat Exchanger is well recognized both in the domestic market and internationally. For FY24, the company has exported products to 14 countries and is marketed across various Indian states. Notably, North America and Europe have emerged as significant markets, reflecting a growing global demand for KRN’s innovative products.
Market participants maintain a positive outlook, as indicated by the strong subscription numbers and rising prices leading up to and following the IPO.
The IPO for KRN Heat Exchanger received a remarkable 213.41 subscriptions overall. Specifically, in the retail category, the bid count reached 96.74 times; in the Qualified Institutional Buyers (QIB) category, it reached an incredible 253.04 times; and in the Non-Institutional Investors (NII) category, it attracted an astonishing 430.54 times.
The GMP further supported the sentiment that KRN Heat Exchanger and Refrigeration shares would list with substantial gains.
KRN Heat Exchanger’s IPO GMP was reported at ₹230, slightly down from ₹270 at the beginning of the subscription period. On the second day, the GMP showed an increase to ₹235, reflecting continued market confidence, according to data from Investorgain.com. The current GMP suggests that market players are still anticipating significant gains upon listing.
