KRN Heat Exchanger IPO: Key things to know ahead of September 25 launch

KRN Heat Exchanger IPO (KRN Heat Exchanger and Refrigeration IPO) is scheduled to open for subscription on Wednesday, September 25, and close on September 27.

Ahead of the opening of the subscription window here are the key details the investors should know about KRN Heat Exchanger IPO:

KRN Heat Exchanger IPO offer size and key dates

KRN Heat Exchanger IPO consists of a completely fresh issuance of 1.55 crore shares. The company plans to ₹341 crore from this public issue. The price band for the IPO is ₹209- ₹220 per share, with lot size of 65 shares.

KRN Heat Exchanger has reserved 50% of the net offer for Qualified Institutional Buyers. As much as 35% of the net issue has been set aside for the retail category and 15% of the net issue has been reserved for the Non-Institutional Investors (NIIs).

KRN Heat Exchanger IPO subscription window will open on September 25. The share allotment status is likely to be finalised on September 30. Subsequent to the allotment of shares, refunds will be initiated for unsuccessful bidders on October 1, and successful bidders will receive shares of KRN Heat Exchanger in their demat accounts on the same day. KRN Heat Exchanger shares will be listed on the NSE and BSE. The tentative listing date for the IPO is October 3.

KRN Heat Exchanger: Key financials and competitors

KRN Heat Exchanger’s revenue grew by over 25% to ₹313.54 crore in FY24 compared to ₹249.89 crore in FY23. The company’s profit-after-tax increased nearly 21% to ₹39.07 crore in FY24 compared to ₹32.31 crore in FY23.

KRN Heat Exchanger and Refrigeration Limited is a leading manufacturer of fin and tube-type heat exchangers. The products made by the company are used in the domestic, commercial, and industrial Heating, Ventilation, air conditioning and refrigeration (HVAC&R) industry.

The company mentioned in its red herring prospectus that competition is intense in the heat exchange market due to the presence of multiple companies. KRN Heat Exchanger and Refrigeration added that some of its key competitors include Alfa Laval, Danfoss, Heatex Industries Limited and HRS Process Systems Ltd.

KRN Heat Exchanger business model

KRN Heat Exchanger and Refrigeration follows a business-to-business (B2B) model. The company manufactures fin and tube-type heat exchangers according to customers' varied requirements, as per the company’s RHP. The company added that it keeps inventory of raw materials such as copper tubes, copper rods, aluminium foils, and finished goods at a minimum level so that it can produce products as per our customers' requirements.

KRN Heat Exchanger IPO objective

KRN Heat Exchanger and Refrigeration plans to use the proceeds from the public issue to set up a new manufacturing facility in Neemrana, Rajasthan, for its wholly owned subsidiary, KRN HVAC Products Pvt Ltd. A portion of the proceeds will also be used for general corporate purposes.

KRN Heat Exchanger promoters

The company's promoters include Santosh Kumar Yadav, Anju Devi, and Manohar Lal. They hold a 94.39% stake in the company ahead of the public issue.

KRN Heat Exchanger IPO registrar

Bigshare Services Pvt Ltd is the registrar for the KRN Heat Exchanger IPO, and Holani Consultants Private Limited is the book-running lead manager for the issue.

About KRN Heat Exchanger and Refrigeration

KRN Heat Exchanger and Refrigeration Ltd manufactures copper and aluminium fins, copper tubes, heat exchangers, water coils, condenser coils and evaporator coils.

The company’s key clients include air conditioner manufacturers such as Daikin Airconditioning India Pvt Ltd, Schneider Electric IT Business India Pvt Ltd, Kirloskar Chillers Private Ltd, and Blue Star Ltd. Its manufacturing facility is located in Neemrana, Rajasthan.