KRN Heat Exchanger and Refrigeration Limited IPO: Everything You Need to Know
KRN Heat Exchanger and Refrigeration Limited, a leading manufacturer of heat exchangers, has announced its IPO, opening from September 25, 2024, to September 27, 2024. The IPO, worth ₹341.95 crores, is a book-built issue, consisting entirely of a fresh issue of 1.55 crore shares. Investors are eagerly eyeing this opportunity due to the company’s strong market presence in the heating, ventilation, air conditioning, and refrigeration (HVAC&R) industry.
IPO Details:
- IPO Price Band: ₹209 - ₹220 per share
- IPO Size: ₹341.95 crores
- Shares Offered: 1.55 crore equity shares
- Listing Date: October 3, 2024 (tentative)
- Lot Size: Minimum 65 shares for retail investors, 910 shares for sNII, and 4,550 shares for bNII
Bidding and Allotment:
The IPO will be available for bidding from September 25 to September 27, 2024. Retail investors can participate with a minimum investment of ₹14,300, while sNII and bNII investors can invest starting from ₹200,200 and ₹1,001,000, respectively. The allotment date is set for September 30, 2024, and the shares will be listed on both BSE and NSE by October 3, 2024.
Company Overview:
KRN Heat Exchanger and Refrigeration Ltd specializes in manufacturing fin and tube-type heat exchangers. Their product lineup includes water coils, condenser coils, and evaporator coils, catering to both domestic and international markets such as the UAE, USA, Italy, and more. Their clientele boasts industry giants like Daikin Airconditioning, Blue Star Ltd, and Kirloskar Chillers, further cementing the company’s reputation in the HVAC&R industry.
The company’s manufacturing facility, located in Neemrana, Rajasthan, is equipped with cutting-edge coil manufacturing machines to ensure high-quality production.
Financial Performance:
As of March 2024, KRN Heat Exchanger reported robust financial growth:
- Revenue: ₹313.54 crore
- Net Profit: ₹39.07 crore
- Total Assets: ₹258.36 crore
- Net Worth: ₹131.65 crore
Key Performance Indicators (As of March 31, 2024):
- Return on Equity (ROE): 40.86%
- Return on Capital Employed (ROCE): 31.21%
- PAT Margin: 12.67%
- Debt-to-Equity Ratio: 0.45
Objectives of the Issue:
The proceeds from this IPO will be primarily utilized for:
- Establishing a new manufacturing facility at Neemrana, Alwar, Rajasthan, through KRN HVAC Products Pvt Ltd, a wholly-owned subsidiary.
- General corporate purposes.
Subscription Status:
As of September 26, 2024 (Day 2), the IPO is highly subscribed, with a total subscription rate of 58.55 times. The retail category witnessed a massive subscription of 56.14 times, while the NII category saw 136.22 times subscription.
Conclusion: Should You Invest?
With a strong track record of growth, premium clients, and expansion plans underway, KRN Heat Exchanger is a promising contender in the heat exchanger market. While the IPO appears fully priced based on FY24 earnings, it holds significant potential for long-term investors. Investors may find this IPO appealing, especially given its robust financials, growth outlook, and industry positioning.
Disclaimer: Always consult a financial advisor before making investment decisions.
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