KRN Heat Exchanger IPO 2024: A New Opportunity in the HVAC Industry
KRN Heat Exchanger and Refrigeration Ltd, a leader in manufacturing heat exchangers for the HVAC industry, is launching its Initial Public Offering (IPO) from September 25 to September 27, 2024. This IPO offers investors the chance to participate in a company with strong growth potential in the heating, ventilation, air conditioning, and refrigeration sector, which is expected to expand significantly in the coming years.
The KRN Heat Exchanger IPO Overview
The KRN Heat Exchanger IPO is a book-built issue consisting of 1.55 crore fresh shares. This IPO is entirely a fresh issue, meaning all the shares being offered are new, with no sale of shares by the promoters or existing shareholders. The subscription period for the IPO will be open from September 25 to September 27, 2024. Following this, the shares are expected to be listed on both BSE and NSE, with a tentative listing date of October 3, 2024.
Reservation of Shares:
- Qualified Institutional Buyers (QIB): Up to 50%
- Retail Investors: At least 35%
- Non-Institutional Investors (HNI): At least 15%
This allocation ensures that retail investors get a significant share of the IPO, making it accessible for both large and small investors.
Financial Performance of KRN Heat Exchanger
KRN Heat Exchanger and Refrigeration Ltd has shown impressive growth over the years. The company’s revenue increased by 25.47% in the financial year ending March 31, 2024, reaching ₹313.54 crore. Its profit after tax (PAT) grew by 20.9%, amounting to ₹39.07 crore. This performance highlights the company’s ability to scale efficiently while maintaining profitability.
| Financial Metrics | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|
| Assets | ₹258.36 Cr | ₹148.76 Cr | ₹92.79 Cr |
| Revenue | ₹313.54 Cr | ₹249.89 Cr | ₹158.23 Cr |
| Profit After Tax | ₹39.07 Cr | ₹32.31 Cr | ₹10.59 Cr |
This financial growth can be attributed to the company’s expanding product portfolio, increased production capacity, and growing customer base, both domestically and internationally.
Promoters and Key Investors
The key promoters of KRN Heat Exchanger include Mr. Santosh Kumar Yadav, Mrs. Anju Devi, and Mr. Manohar Lal, who collectively held a pre-issue shareholding of 94.39%. Post-issue shareholding will dilute, but the promoters will still retain significant control of the company.
KRN Heat Exchanger and Refrigeration Limited operates in a specialized business segment, with no directly comparable listed companies in India, making it unique in the market.
ABOUT-KRN Heat Exchanger’s Industry
KRN Heat Exchanger and Refrigeration Limited is a prominent manufacturer and exporter specializing in aluminum and copper fin and tube heat exchangers, including water coils, condenser coils, and evaporator coils. Our products cater to the leading OEMs in the heating, ventilation, air conditioning, and refrigeration (HVAC&R) industry.
Some of our prestigious clients include Daikin India, Schneider Electric, Voltas, Carrier, Eberspaecher, Kirloskar, Blue Box, and Knorr Bremse.
We take pride in our state-of-the-art manufacturing facility, which is equipped with advanced machines, tools, and technologies sourced globally. This facility allows us to maintain high production standards and efficiently meet the diverse needs of our clients.
A key strength of our company is our ability to customize coils with various configurations, tube types, and fin patterns. This flexibility enables us to deliver optimal performance across a wide range of refrigerants. Additionally, we follow strict quality control processes to ensure that all products meet international standards for quality and safety.
Our commitment lies in providing cost-effective, high-performance solutions while ensuring a swift turnaround. We continuously strive to exceed customer expectations, delivering excellence in all aspects of our business.
Strengths of KRN Heat Exchanger IPO:
- Strong Leadership and Experienced Management
The promoters possess exceptional leadership qualities and are supported by a highly experienced and skilled management team, which plays a key role in driving the company’s growth and success. - Long-Standing Client Relationships
KRN Heat Exchanger has cultivated long-term business relationships with industry-leading clients, ensuring stability and trust in their market presence. - Effective Quality Controls
The company maintains rigorous quality control measures, ensuring high-quality products that meet international standards, which strengthens their reputation among clients. - Consistent Financial Performance
KRN Heat Exchanger has demonstrated consistent financial growth, with increasing revenue and profits, making it a strong contender in its industry. - Established Production Facility
Their advanced manufacturing facility in Neemrana, Rajasthan, is equipped with cutting-edge machinery, ensuring high production efficiency and capacity to meet growing market demands.
Use of KRN Heat Exchanger IPO Proceeds
The funds raised through this IPO will be primarily used to:
- Set up a new manufacturing facility at Neemrana, Alwar, Rajasthan, via the company’s wholly owned subsidiary, KRN HVAC Products Pvt Ltd. This expansion will enable them to cater to the rising demand in both domestic and international markets.
- General corporate purposes, helping the company improve its overall financial position and working capital.
Important Dates to Remember for KRN Heat Exchanger IPO
| Details | Information |
|---|---|
| IPO Date | September 25, 2024 to September 27, 2024 |
| Listing Date | [To be announced] |
| Face Value | ₹10 per share |
| Price Band | [To be announced] |
| Lot Size | [To be announced] |
| Total Issue Size | 15,523,000 shares (aggregating up to ₹[To be announced] Cr) |
| Fresh Issue | 15,523,000 shares (aggregating up to ₹[To be announced] Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Pre-Issue Shareholding | 43,999,980 shares |
| Post-Issue Shareholding | 59,522,980 shares |
- IPO Open Date: September 25, 2024
- IPO Close Date: September 27, 2024
- Allotment Date: September 30, 2024
- Refund Initiation: October 1, 2024
- Listing Date: October 3, 2024
Investment Considerations
Investors considering this IPO should note the following:
- Strong financials: KRN Heat Exchanger has shown consistent growth in revenue and profit, making it an attractive investment opportunity.
- Growing industry: The HVAC market is poised for growth, driven by increasing demand for energy-efficient heating and cooling solutions.
- Expanding global footprint: KRN’s ability to cater to international clients provides it with a competitive edge in the market.
However, investors should also consider the price band, which has yet to be announced. Understanding the valuation of the IPO will be critical in assessing whether it is priced appropriately for the company’s growth potential.
Final Thoughts for KRN Heat Exchanger IPO
The KRN Heat Exchanger IPO presents an exciting opportunity for investors looking to tap into the rapidly growing HVAC industry. With its solid financial performance, diverse product offerings, and expansion plans, the company is well-positioned for future growth. Potential investors should keep an eye on the price band announcement and perform thorough research before making any commitments.
By investing in KRN Heat Exchanger, you could be part of a company that plays a critical role in the HVAC&R market, helping to drive innovation and efficiency in one of the world’s most important sectors. For more FINANCIAL UPDATE please click here
Disclaimer:
Investing in an IPO carries risks. Please review all company details carefully and consider consulting with a financial advisor before making any investment decisions. Past performance does not guarantee future returns.
Company Address
KRN Heat Exchanger and Refrigeration Limited
Plot No. F – 46, 47, 48, 49 EPIP,
RIICO Industrial Area,
Neemrana
Alwar,Rajasthan-301705
India
Website: http://www.krnheatexchanger.com/
Phone: +91 – 9257025440
Email: cs@krnheatexchanger.com
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