KRN Heat Exchanger made a remarkable stock market debut, listing at a 118% premium over its issue price. Priced at ₹220 per share during its initial public offering (IPO), the stock opened at ₹480 per share, reflecting the overwhelming demand from investors.
Why KRN Heat Exchanger's IPO stood out?
KRN Heat Exchanger, a Rajasthan-based company, specialises in the manufacturing of heat exchangers used in the heating, ventilation, air conditioning, and refrigeration industries. With a wide presence in 20 Indian states and 2 union territories and exports to countries like the USA, UAE, and Germany, the company is positioned for significant growth.
Their IPO, open for bidding from September 25 to 27, received an impressive subscription of 213 times, signalling high investor interest. This makes it a noteworthy consideration for those looking to invest in stocks in the HVAC industry.
Impressive financial performance
KRN Heat Exchanger has demonstrated strong financial growth, with a 25% compound annual growth rate (CAGR) in revenue from operations and a 54% rise in profit between FY22 and FY24. These numbers, alongside the expected growth of the Indian HVAC market, make KRN an attractive option for investors.
The HVAC market, valued at $9.1 billion in 2023, is projected to grow at a CAGR of 14.5% until 2029, which could further fuel the company's revenue growth. This makes investing in stocks like KRN Heat Exchanger a lucrative option for long-term gains.
Post-listing stock performance
After the IPO listing at ₹480 per share, KRN Heat Exchanger shares saw an additional 3% increase, trading at ₹491 apiece on the National Stock Exchange (NSE). This positive post-listing performance reflects strong investor confidence. The substantial premium, combined with continued gains, highlights the potential of investing in stocks of high-growth SMEs like KRN Heat Exchanger.
Key takeaways for investors
For those looking to invest in stocks, KRN Heat Exchanger's strong debut and future growth prospects in the HVAC industry offer a solid opportunity. The company's expanding presence in both domestic and international markets, coupled with its strong financials, makes it a promising candidate for portfolio diversification.
KRN Heat Exchanger’s IPO success, driven by high demand and solid fundamentals, makes it an attractive option for anyone looking to invest in stocks. With the Indian HVAC market expected to grow significantly in the coming years, the company is poised for continued success in the stock market.
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