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KRN Heat Exchanger saw a spectacular debut with a 118% increase to its issue price following a strong subscription of over 213 for its IPO.Post the listing, the stock surged a further 1% and is currently trading at Rs 475.85 on BSE.Analysts said the company's expertise in fin and tube-type heat exchangers for HVAC applications, coupled with international quality standards, positions it well for growth.KRN Heat Exchanger benefits from quick turnaround times and strong relationships with leading clients. The company's consistent growth in both revenue and profitability further reinforces its appeal."Even though the IPO's valuation seems reasonable, it is difficult to draw direct comparisons because no peers have been listed. Nonetheless, investors may book a portion of the profit and keep the remaining amount because of KRN Heat Exchangers' excellent fundamentals and market demand," said Shivani Nyati, Head of Wealth, Swastika Investmart.The company proposes to use the net proceeds from the IPO for investment in wholly-owned subsidiary KRN HVAC Products for setting up a new manufacturing facility at Neemrana, Alwar, in Rajasthan. The remaining amount will be used for other general corporate purposes.KRN Heat Exchanger specializes in manufacturing fin and tube-type heat exchangers for the HVAC&R (heat ventilation air conditioning and refrigeration) industry, using primarily non-ferrous metals like copper and aluminum. The company customizes heat exchangers in various shapes and sizes, with diameters ranging from 5 mm to 15.8 mm, to meet customer requirements and market demand.Their product range includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils, and sheet metal parts for different cooling applications. Heat exchangers work by transferring thermal energy between fluids without mixing them, using conduction to either heat or cool substances.In FY24, KRN's revenue from operations grew 25% year-on-year to Rs 308 crore, while net profit after tax increased by 22% to Rs 39 crore. Holani Consultants served as the sole book-running lead manager for the IPO.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)