KRN Heat Exchanger and Refrigeration Limited

About KRN Heat Exchanger and Refrigeration Limited  Incorporated in 2017, KRN Heat Exchanger and Refrigeration Limited is a manufacturer of fin and tube-type heat exchangers for heat ventilation, air conditioning and refrigeration industry. Its product portfolio includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils and sheet metal parts.  It serves customers in India and abroad. As of FY24, it has a customer base of 115, including Daikin, Schnieder, Kirloskar, Blue Star, Climaventa and Frigel. Meanwhile, the top 10 clients contributed over 72% to overall revenue in FY24.  The company has a presence in 20 states and 2 union territories in India and exports its products to other countries, including the UAE, USA, Italy, Saudi Arabia, Norway, Czech Republic, Germany, UK, Poland, China, Canada, Ireland, France, and others.  KRN Heat Exchanger has manufacturing facility is located in Alwar, Rajasthan. As of FY24, it had a supplier base of over 510 suppliers.  Its wholly-owned subsidiary, KRN HVAC Products Private Limited, manufactures certain types of heat exchangers that the company does not currently manufacture. The company also wants to maximise this forward integration by further venturing into distribution and sales channels.  Between FY22 and FY24, it saw a 25% CAGR rise in its revenue from operations and 54% in its profit. Moreover, the Indian heating, ventilation, and air conditioning (HVAC) market reported a turnover of $9.1 billion in 2023 and is expected to grow at a CAGR of 14.5% until 2029 to reach USD 20.5 billion, which could benefit the company.  Now, KRN Heat Exchanger and Refrigeration Limited is launching its initial public offer (IPO). The total IPO issue size is ₹341.9 crore, comprising entirely the fresh issue. The money raised from the fresh issue will be used to invest in its subsidiary to set up a new manufacturing facility in Rajasthan and for general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the KRN Heat Exchanger and Refrigeration IPO:     Company Name  KRN Heat Exchanger and Refrigeration Limited   Company Type  Private    Company Established On  2017   KRN Heat Exchanger and Refrigeration Limited IPO Opening Date  25th September 2024    KRN Heat Exchanger and Refrigeration Limited IPO Closing Date  27th September 2024   KRN Heat Exchanger and Refrigeration Limited IPO Allotment Status  30th September 2024    Credit of Shares to the Demat Account  1st October 2024   KRN Heat Exchanger and Refrigeration Limited IPO Listing Date  3rd October 2024    KRN Heat Exchanger and Refrigeration Limited IPO Face Value  ₹10 per share   KRN Heat Exchanger and Refrigeration Limited IPO Lot Size  65 shares    KRN Heat Exchanger and Refrigeration Limited IPO Issue Size  Approx ₹ 341.9 crore   KRN Heat Exchanger and Refrigeration Limited IPO to be Listed on  BSE, NSE    KRN Heat Exchanger and Refrigeration Limited IPO Price band  ₹ 209 – ₹ 220 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 156 crore  ₹ 247 crore  ₹ 308 crore    Net Profit  ₹ 10.5 crore  ₹ 32.3 crore  ₹ 39 crore              Here’s a quick look at KRN Heat Exchanger and Refrigeration Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Long‐standing business relationships with leading clientele, such as since 2018 with Daikin, 2019 with Schnieder, and 2020 with Kirloskar.  Effective quality control checks with a team consisting of 41 employees, including 25 contractual employees dedicated to quality management.  Consistent financial performance with EBITDA margins of 10%, 19%, and 18% in FY22, FY23, and FY24, respectively.  Established manufacturing facility located at renowned RIICO industrial areas of Neemrana, Rajasthan.  Has ISO, IS, CE, BS, and UL-207 certifications.   Risks and threats   The inability to maintain its current revenue growth and profit margins in the future will adversely affect its business.  Dependent on limited customers as its largest customer accounted for 33% of its revenue from operations in FY24.  It does not have long-term agreements with its customers, who can choose not to source their requirements from the company.  Dependent on its top 5 suppliers, who accounted for 57% of its total purchases as of FY24. However, it does not have long-term contracts with any of its suppliers.  Import purchases accounted for 78% of the total raw materials purchased in FY24, which exposes it to country-related risks or any change in government policies regarding imports of goods.  Reduction or termination of export benefits and other local state government incentives might adversely affect its business.  The cost of production is exposed to fluctuations in the prices of raw materials, particularly Aluminium Foil, Copper Foil, Galvanise sheets, Copper Tubes, Copper and Aluminum sheets, and Stainless Steel.  Faces competition from Prijai Heat Exchangers, Spirotech Heat Exchangers, Alfa Laval India, REX Heat Exchanger, Danfoss Power Solutions India, and Kelvion India.            KRN Heat Exchanger and Refrigeration Limited IPO details  | KRN Heat Exchanger and Refrigeration Limited IPO date  According to the offer document filed by the company with the SEBI, the KRN Heat Exchanger and Refrigeration IPO’s opening date – in other words, the KRN Heat Exchanger and Refrigeration IPO launch date – will be 25th September 2024. The KRN Heat Exchanger and Refrigeration IPO closing date is 27th September 2024. After this, investors will be updated about the allotment status on 30th September 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 1st October 2024. The KRN Heat Exchanger and Refrigeration IPO listing date is 3rd October 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | KRN Heat Exchanger and Refrigeration Limited IPO Price Band  The IPO is a fresh issue. The KRN Heat Exchanger and Refrigeration IPO price band has been set between ₹209 and ₹220 per share. Interested investors can choose a price within this band to apply for the IPO.  The KRN Heat Exchanger and Refrigeration IPO listing price will be determined on 3rd October 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | KRN Heat Exchanger and Refrigeration Limited IPO Lot size  The KRN Heat Exchanger and Refrigeration IPO details have been declared. The KRN Heat Exchanger and Refrigeration IPO lot size, is set at 65 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the KRN Heat Exchanger and Refrigeration IPO issue size is approx ₹341.9 crore.           How to pre-apply for the KRN Heat Exchanger and Refrigeration Limited IPO?  You can pre-apply for the KRN Heat Exchanger and Refrigeration Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘KRN Heat Exchanger and Refrigeration Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the KRN Heat Exchanger and Refrigeration Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the KRN Heat Exchanger and Refrigeration Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the KRN Heat Exchanger and Refrigeration Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘KRN Heat Exchanger and Refrigeration Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the KRN Heat Exchanger and Refrigeration Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the KRN Heat Exchanger and Refrigeration Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your KRN Heat Exchanger and Refrigeration Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the KRN Heat Exchanger and Refrigeration Limited IPO  To apply for the KRN Heat Exchanger and Refrigeration Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the KRN Heat Exchanger and Refrigeration Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the KRN Heat Exchanger and Refrigeration Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.