The Initial Public Offering (IPO) of KRN Heat Exchanger & Refrigeration Ltd, a company based in Neemrana, Rajasthan, is hitting the market soon. The IPO will open on September 25, 2024, and investors can place their bids until September 27. This article will provide you with all the important information about the upcoming IPO, including the company’s plans, products, financial performance, and customer base.
IPO Details and Company’s Expansion Plan
KRN Heat Exchanger is bringing this IPO as part of its expansion strategy. The company plans to raise fresh funds through the issue of 1,55,23,000 equity shares. The price band for the IPO has been set between ₹209 and ₹220 per share. If the shares are sold at the higher end of the price band, the company could raise around ₹341.50 crore.
The amount raised through this IPO will be utilized for several purposes, including setting up a new manufacturing unit and investing in its fully-owned subsidiary, KRN HVAC Products. Some funds will also be used for general corporate activities. Anchor investors can begin placing their bids from September 24, a day before the public offer opens.
What Does KRN Heat Exchanger Do?
KRN Heat Exchanger & Refrigeration is a well-known manufacturer of fin and tube-type heat exchangers. Their products include copper and aluminum fins, copper tubes, condenser coils, evaporator coils, and water coils, all of which are used in domestic, commercial, and industrial heating, ventilation, air conditioning, and refrigeration systems (HVACR).
The company’s main manufacturing facility is located in Neemrana, Rajasthan, and spans across 7,800 square meters. It is equipped with advanced machines such as CNC tube benders, hair pin benders, fin press machines, and vertical expanders. KRN Heat Exchanger is capable of producing tubes in a variety of shapes and sizes, with diameters ranging from 5 mm to 15.88 mm.
Financial Performance and Growth
KRN Heat Exchanger has shown strong financial growth in recent years. For the financial year ending March 31, 2024, the company reported a net profit of ₹39.07 crore on a total revenue of ₹313.54 crore. Between FY 2023 and FY 2024, the company’s revenue grew by 25.47%, while its profit after tax (PAT) saw an increase of 20.9%.
The company also raised ₹9.54 crore last month through a pre-IPO placement round, further boosting its capital.
Key Customers of KRN Heat Exchanger
KRN Heat Exchanger & Refrigeration Ltd supplies its products to a number of well-known companies in India and abroad. Some of its major clients include Daikin Airconditioning India, Schneider Electric IT Business India, Kirloskar Chillers, Blue Star, Climaventa Climate Technologies, and Frigel Intelligent Cooling Systems India.
In addition to serving the domestic market, the company exports its products to several countries, including the UAE, USA, Italy, Saudi Arabia, Norway, Germany, the UK, and others. This global reach further enhances the company’s credibility and market presence.
Promoters of the Company
The company is led by Santosh Kumar Yadav, who has over 20 years of experience in the heat exchanger and refrigeration industry. Alongside him, Anju Devi, his wife, and Manohar Lal are also listed as promoters of the company. Their extensive experience in the sector has contributed to KRN Heat Exchanger’s steady growth and success.
With its upcoming IPO, KRN Heat Exchanger is aiming to take its business to the next level by expanding its manufacturing capabilities and solidifying its market position in both domestic and international markets. Investors looking to diversify their portfolio may find this IPO a promising opportunity.
