KRN Heat Exchanger IPO
KRN Heat Exchanger IPO is opening for subscription from September 25-27, 2024. It is a book built issue of Rs 341.95 crores, offering 1.55 crore shares at a price band of Rs 209-220 per share. The company manufactures fin and tube-type heat exchangers for the HVAC&R industry.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
IPO Basics and Timeline
The KRN Heat Exchanger IPO is a book-built issue of Rs 341.95 crores, representing a fresh offering of 1.55 crore shares.
Bidding for the IPO opened on September 25, 2024, and will close on September 27, 2024. Allotment is expected on September 30, 2024, with listing on the BSE and NSE on October 3, 2024.
The IPO price band is ₹209 to ₹220 per share. The minimum lot size is 65 shares, requiring a minimum investment of ₹14,300 for retail investors. For sNII, the minimum investment is 14 lots (₹200,200), while bNII requires 70 lots (₹1,001,000).
Holani Consultants Private Limited is the book running lead manager, and Bigshare Services Pvt Ltd is the registrar.
1
IPO Opens
September 25, 2024
2
IPO Closes
September 27, 2024
3
Basis of Allotment
September 30, 2024
4
Listing Date
October 3, 2024
About KRN Heat Exchanger and Refrigeration Limited
Fin and Tube-type Heat Exchangers
KRN manufactures fin and tube-type heat exchangers for the HVAC&R industry, specializing in copper and aluminum fins and copper tubes. The company offers water coils, condenser coils, and evaporator coils in sizes from 5 mm to 15.88 mm for domestic, commercial, and industrial applications.
Manufacturing Facility
KRN's 7,800 sq. mt. facility in Neemrana, Rajasthan, uses advanced coil manufacturing machinery including Hair Pin Bender, Fin Press Machine, CNC Tube Bender, and Vertical Expander.
Prestigious Clients and Global Reach
KRN serves renowned clients like Daikin, Schnieder Electric, Kirloskar Chillers, Blue Star, Climaventa, and Frigel. The company exports its products to the UAE, USA, Italy, Saudi Arabia, Norway, Czech Republic, Germany, UK, and more.
IPO Details and Reservation
KRN Heat Exchanger IPO offers 1,55,43,000 shares. 31,07,455 (19.99%) to QIB, 23,87,215 (15.36%) to NII, 54,98,330 (35.37%) to RII and 45,50,000 (29.27%) to Anchor investors.
Financials and Key Performance Indicators
The market capitalization of KRN Heat Exchanger IPO is Rs 1309.51 Cr.
KPI as of March 31, 2024:
Pre IPO EPS (Rs): 8.88
Post IPO EPS (Rs): 6.56
Pre IPO P/E (x): 24.78
Post IPO P/E (x): 33.52
Assets
258.36 Cr
Revenue
313.54 Cr
Profit After Tax
39.07 Cr
Net Worth
131.65 Cr
IPO Objectives
The net proceed from fresh issue is to be utilized for the following:
- Invest in the wholly owned subsidiary, KRN HVAC Products Pvt Ltd for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan, and
- General corporate purposes.
IPO REVIEW
KRN Heat Exchanger is a leading provider of fin tubes and other heat exchange products for the B2B market. The company has a strong customer base, including blue-chip clients like Daikin, Blue Star, Voltas, and Carrier Aircon. KRN Heat Exchanger has demonstrated impressive growth in recent years and is poised for continued success with its expansion plans.
While the IPO appears fully priced based on FY24 earnings,
investors seeking medium to long-term growth may find the company attractive.
investors seeking medium to long-term growth may find the company attractive.