KRN Heat Exchanger and Refrigeration IPO Details
KRN Heat Exchanger and Refrigeration Limited, a Rajasthan-based company, is set to launch its Initial Public Offering (IPO) opening for subscription on September 25. Investors will have the opportunity to subscribe until September 27, and an exclusive one-day window for anchor investors will open on September 24. The price band for the IPO is expected to be revealed later this week. This IPO comprises an issuance of 1.55 crore fresh equity shares, with no shares being sold through an Offer for Sale (OFS), indicating that all proceeds will directly benefit the company.
Utilization of IPO Funds
The funds raised through this IPO will be allocated primarily to the establishment of a new manufacturing facility in Alwar, Rajasthan, through its subsidiary, KRN HVAC Products. The facility will require an investment of Rs 242.46 crore. Additionally, a portion of the funds will be directed towards general corporate purposes. As of mid-July, KRN Heat Exchanger had already invested Rs 36.44 crore in this venture.
Listing and Management
The equity shares of KRN Heat Exchanger will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Holani Consultants is appointed as the sole book-running lead manager for the IPO, while Bigshare Services will serve as the registrar for the offer.
Pre-IPO Performance
Prior to the public offering, KRN Heat Exchanger raised Rs 9.54 crore through a pre-IPO placement involving the sale of 4.77 lakh equity shares at Rs 200 each. This action has subsequently reduced the number of shares available in the IPO. Assuming Rs 200 is projected as the upper price band, the total estimated size of the IPO could reach approximately Rs 310 crore.
Company Overview
KRN Heat Exchanger specializes in manufacturing fin and tube type heat exchangers that cater to the heating, ventilation, air conditioning, and refrigeration (HVAC&R) sectors. The company produces a variety of components including condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils, and sheet metal parts. Their clientele includes notable industry leaders such as Daikin Airconditioning India, Schneider Electric IT Business India, Kirloskar Chillers, Blue Star, Climaventa Climate Technologies, and Frigel Intelligent Cooling Systems India.
Financial Performance Analysis
KRN Heat Exchanger has exhibited robust financial growth over recent years. In the financial year ending March 2024, the company recorded a profit increase of 20.9%, reaching Rs 39 crore. Additionally, its revenue surged by 24.6%, totaling Rs 308.3 crore compared to Rs 247.5 crore in the prior fiscal year. This positive trajectory in financial performance reflects the company’s solid market position and the increasing demand for HVAC&R solutions.
Conclusion
The upcoming IPO of KRN Heat Exchanger and Refrigeration Limited presents an appealing investment opportunity for market participants. With its strong financials, ambitious expansion plans, and established client base, the company is well-positioned for future growth in the HVAC&R sector. Investors are encouraged to consider this IPO as a viable addition to their portfolios, taking note of the company’s potential for sustained profitability and market advancement.
