KRN Heat Exchanger and Refrigeration IPO: An Overview
KRN Heat Exchanger and Refrigeration Limited is attracting considerable interest from investors as it launches its Initial Public Offering (IPO). On the very first day of subscription, the IPO witnessed a remarkable subscription rate of 24.09 times, reflecting the strong demand in the market. It has received bids for a staggering 26.48 crore shares, while only 1.09 crore shares were available for subscription. Investors have a chance to participate until September 27, with bids accepted in a price range of Rs 209-220. The company aims to raise approximately Rs 341.95 crore from this public offering, which is crucial for its growth and expansion plans.
IPO Subscription Details
| Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers (QIB) | 1.44 times |
| Non-Institutional Investors (NII) | 53.88 times |
| Retail Investors | 23.96 times |
| Total Subscription | 24.09 times |
Market Performance and Listing Aspirations
As of September 25, the grey market for KRN Heat Exchanger’s IPO is displaying a robust demand, trading at a significant premium of Rs 239. This indicates that the company’s shares could potentially list at a price of around Rs 459 on the stock exchange. Should this projection hold true, investors could see a remarkable profit of 108.64% on their investment, effectively doubling their money.
Utilization of IPO Proceeds
The funds generated from the IPO are earmarked for establishing a new manufacturing facility for KRN HVAC Products Pvt Ltd, a wholly-owned subsidiary of KRN Heat Exchanger, in Neemrana, Rajasthan. The money will also be allocated for general corporate purposes to enhance operational efficiency and growth potential.
Company Performance and Financials
KRN Heat Exchanger has shown strong financial growth, with a reported consolidated net profit of Rs 390.69 crore and revenues amounting to Rs 313.54 crore in FY24. The company has effectively managed its borrowings, which stand at Rs 59.69 crore. Over the past fiscal year, KRN’s profit surged by 20.9%, reaching Rs 39 crore, while revenues grew by an impressive 24.6%, climbing from Rs 247.5 crore in the previous fiscal year to Rs 308.3 crore in FY 2024.
About KRN Heat Exchanger
Founded in 2017 and based in Rajasthan, KRN Heat Exchanger specializes in manufacturing fin and tube type heat exchangers primarily for the heating, ventilation, air conditioning, and refrigeration (HVAC&R) sectors. The company offers a range of products, including condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils, and sheet metal components. KRN’s products are supplied to renowned clients such as Daikin Airconditioning India, Schneider Electric IT Business India, Kirloskar Chillers, Blue Star, Climaventa Climate Technologies, and Frigel Intelligent Cooling Systems India, showcasing its formidable presence in the industry.
