KRN Heat Exchanger Share Price Closes At 117% Premium Over IPO Price

KRN Heat Exchanger and Refrigeration Ltd. share price closed on the BSE at Rs 478.45 per share Thursday, marking a premium of 117.48% over the issue price of Rs 220 apiece. The stock closed at Rs 473.99 per share on the National Stock Exchange, marking a premium of 115.45%.

Shares of the company had debuted at the NSE on Thursday at Rs 480 apiece, a premium of 118.18%, and at Rs 470 per share on the BSE, marking a premium of 113.64%.

KRN Heat's maiden public issue saw widespread demand, and was subscribed 214.42 times on its third and last day of bidding last Friday. Proceeds from the issue will be invested in the HVAC manufacturing facility operated by its subsidiary in Rajasthan's Neemrana, according to the prospectus for the offer.

"We plan to use Rs 240 crore for our new subsidiary, KRN HVAC Products, which will help expand our manufacturing capabilities," said Chairman and Managing Director Santosh Kumar Yadav.

He added that the new facility is currently under construction and is expected to start production early next year.

"We believe this is a very under-penetrated industry that aligns with India's consumption growth story. Currently, the usage of air conditioners, refrigerators, and other air-conditioned products is still quite low in India, but we see this changing as the economy grows," Director Ashok Holani said on broader industry outlook.

He also said that the demand for heat exchangers, an essential component for air conditioning units, is expected to rise significantly.

"We manufacture a range of heat exchangers for the commercial air conditioning segment, using premium technology. With the new facility funded by the IPO proceeds, we will be able to enhance our production capabilities and meet not only domestic but also international demand," Holani said.

KRN Heat is already exporting its products and the expanded capacity will further support its export growth, the director said.

The Rajasthan-based company manufactures fin and tube-type heat exchangers for the heat ventilation air conditioning and refrigeration industry.

The company's entire manufacturing operations are carried out at its consolidated manufacturing facility comprising two industrial plots situated in the RIICO Industrial Area located in Neemrana.

The company has long-standing relations with Daikin Air conditioning India Pvt., Schnieder Electric IT Business India Pvt., Kirloskar Chillers Pvt., Blue Star Ltd. and Climaventa Climate Technologies Pvt.

The company raised Rs 100 crore from anchor investors ahead of its initial IPO, by allotting 45.5 lakh shares at Rs 220 apiece to 10 investors.