KRN Heat Exchanger and Refrigeration Ltd to launch ₹342 Crore IPO on Sept 25
KRN Heat Exchanger and Refrigeration Ltd Gears Up for ₹342 Crore IPO, Set to Open on September 25, 2024
BILKULONLINE
Ahmedabad, Sep 23: KRN Heat Exchanger and Refrigeration Ltd, a key player in the Heat Ventilation Air Conditioning & Refrigeration (HVAC&R) industry, is set to launch its Initial Public Offering (IPO) on September 25, 2024, aiming to raise ₹341.5 crore. With an impressive track record of manufacturing top-tier, non-ferrous heat exchangers, the company is attracting strong interest from investors in the market.
Key Features of KRN Heat Exchanger IPO
IPO Size and Pricing:
The IPO is a fresh issue of 1,55,23,000 shares, valued between ₹324.43 crore and ₹341.51 crore. The price band for the shares has been set at ₹209 to ₹220 per share. Retail investors have access to 35% of the total shares, while the remaining portion is reserved for institutional investors.
IPO Timeline:
The IPO will be open for subscription from September 25 to September 27, 2024, with allotments expected to be finalized on September 30, 2024. The company’s shares are scheduled to list on BSE and NSE on October 3, 2024.
Product Portfolio and Market Positioning:
KRN Heat Exchanger specializes in manufacturing fin and tube-type heat exchangers made from copper and aluminum. Its wide range of products includes evaporator coils, condenser coils, fluid and steam coils, condensing units, copper headers, and sheet metal parts, catering to industries such as air conditioning, heating, and refrigeration. The company’s ability to produce custom-sized heat exchangers sets it apart in the competitive HVAC&R market.
Financial Performance:
Over the past three years, KRN Heat Exchanger has demonstrated remarkable growth, with revenue growing at a CAGR of 25.46%. The company reported revenue of ₹313.54 crore in 2024, up from ₹249.89 crore in 2023, alongside a profit of ₹39.07 crore in 2024, compared to ₹32.31 crore in the previous year. These figures underline the company’s consistent performance, providing a solid foundation for its IPO valuation.
Prominent Leadership:
The company’s leadership is spearheaded by Santosh Kumar Yadav, a first-generation entrepreneur and the Promoter, Chairman, and Managing Director of KRN Heat Exchanger. Hailing from Tijara City, Rajasthan, Yadav’s vision has driven the company’s growth and reputation in the HVAC&R sector.
Utilization of IPO Proceeds:
A significant portion of the IPO proceeds will be invested in KRN Heat Exchanger’s wholly-owned subsidiary, KRN HVAC Products, to establish a new manufacturing facility in Neemrana, Alwar, Rajasthan. The remaining funds will be utilized for general corporate purposes, further strengthening the company’s operations.
Investment Insights
KRN Heat Exchanger’s IPO offers a compelling opportunity for long-term investors. With a strong financial record, robust product portfolio, and promising growth prospects in the HVAC&R sector, the company is well-positioned to leverage the increasing demand for efficient and high-quality heat exchange solutions. The IPO’s valuation, alongside the company’s plans to expand its manufacturing capacity, makes it an attractive investment for both retail and institutional investors.
IPO Details at a Glance:
IPO Date: September 25-27, 2024
Price Band: ₹209 to ₹220 per share
IPO Size: ₹324.43 crore – ₹341.51 crore
Listing: BSE and NSE on October 3, 2024
Allotment Date: September 30, 2024
Retail Quota: 35%
With KRN Heat Exchanger’s strong market position and continued innovation, this IPO is poised to mark another milestone in the company’s growth trajectory.
Both Santosh Kumar Yadav, Chairman and MD, Suresh Holani- who is associated with Holani Consultants is Director of KRN Heat Exchanger Ltd were in Ahmedabad on Monday to interact with the media.
(Disclaimer: Investors must thoroughly study the company profile and details before investing)
