The initial public offering (IPO) of KRN Heat Exchanger and Refrigeration is scheduled to open for subscription on Wednesday, September 25 and will remain available for bidding until Friday, September 27. This highly anticipated IPO offers investors an opportunity to tap into the growth of the HVAC (Heating, Ventilation, and Air Conditioning) industry, a sector experiencing rapid development in both domestic and international markets. With a price band set between Rs 209 and Rs 220 per share, investors can apply for a minimum lot size of 65 equity shares, and thereafter in multiples.
Overview of KRN Heat Exchanger and Refrigeration
KRN Heat Exchanger and Refrigeration is a leading manufacturer specializing in fin and tube-type heat exchangers, crucial components used in the HVAC and refrigeration industries. Their product portfolio includes a wide range of copper and aluminium fins, copper tubes, and various types of heat exchangers, including water coils, condenser coils, and evaporator coils. These products are used extensively in domestic, commercial, and industrial HVAC systems across sectors.
The IPO is set to include a fresh sale of 1,55,23,000 shares, amounting to approximately Rs 341.50 crore at the higher end of the price band. Anchor investors will get early access through a dedicated anchor book opening on Tuesday, September 24.
Why KRN Heat Exchanger and Refrigeration IPO is Attracting Attention
The company’s expertise in the HVAC market positions it strongly in a rapidly expanding industry. KRN Heat Exchanger and Refrigeration is well-known for its high-quality production and partnerships with industry giants. Their client base includes notable brands such as Daikin Airconditioning India, Schneider Electric IT Business India, Kirloskar Chillers, Blue Star, and Climaventa Climate Technologies. Moreover, they are also engaged in the international market, exporting products to UAE, USA, Italy, Saudi Arabia, Norway, and more.
KRN Heat Exchanger’s production facility, located in Neemrana, Rajasthan, spans an impressive 7,800 square meters, with state-of-the-art machinery such as Hair Pin Bender, Fin Press Machine, and CNC Tube Bender. These advanced tools enable the company to produce a wide variety of heat exchanger tubes with diameters ranging from 5mm to 15.88mm, making them adaptable to the specific needs of various industries.
Financial Performance of KRN Heat Exchanger
KRN Heat Exchanger has demonstrated strong financial growth over recent years. For the fiscal year ending March 31, 2024, the company reported a net profit of Rs 39.07 crore and generated revenue of Rs 313.54 crore. In comparison, for the fiscal year 2022-23, KRN reported Rs 32.31 crore in net profit with revenue reaching Rs 249.89 crore. This steady increase in both top-line and bottom-line growth is a positive sign for prospective investors looking to participate in the IPO.
Additionally, the company successfully raised Rs 9.54 crore through its pre-IPO placement, which involved selling 4.77 lakh shares at Rs 200 per share.
Purpose of the IPO
The proceeds from the KRN Heat Exchanger IPO will be used for a variety of strategic initiatives. A significant portion of the funds will be allocated to invest in their wholly owned subsidiary, KRN HVAC Products, for the construction of a new manufacturing facility. This new facility will help scale production and enhance the company’s ability to meet increasing demand from both domestic and international clients. Additionally, the remaining proceeds will be utilized for general corporate purposes, ensuring operational efficiency and long-term sustainability.
Competitive Edge and Industry Presence
One of the major factors driving KRN Heat Exchanger’s success is its strong presence in both domestic and international markets. The company’s ability to manufacture and customize high-quality heat exchangers for a wide range of industries makes it a go-to partner for companies requiring specialized HVAC solutions.
The global HVAC market is expected to experience substantial growth in the coming years, driven by the rising demand for energy-efficient and environmentally-friendly heating and cooling systems. With KRN Heat Exchanger firmly positioned to capitalize on these trends, its IPO has generated significant interest among retail and institutional investors alike.
Important Information for Investors
IPO Price Band and Share Lot Size
The price band for KRN Heat Exchanger’s IPO has been set at Rs 209 to Rs 220 per share. Investors must bid for a minimum of 65 equity shares, with subsequent bids made in multiples of this lot size.
IPO Allotment and Listing Dates
- Anchor Book Opening Date: September 24, 2024
- IPO Opening Date: September 25, 2024
- IPO Closing Date: September 27, 2024
- Allotment Date: Expected by October 2, 2024
- Listing Date: Tentative listing on October 3, 2024 on both BSE and NSE
How to Check KRN Heat Exchanger IPO Allotment Status
After the IPO allotment is finalized, investors can follow these steps to check their allotment status:
- Visit the BSE website at https://www.bseindia.com/investors/appli_check.aspx.
- Select Equity under “Issue Type”.
- From the “Issue Name” drop-down menu, select KRN Heat Exchanger and Refrigeration Ltd.
- Input your Application Number or PAN number.
- Verify using the I am not a robot CAPTCHA and click Search to view your allotment status.
Alternatively, investors can visit Bigshare Services’ portal (the official registrar) at https://ipo.bigshareonline.com/IPO_Status.html for allotment details.
Anchor Investors and Share Allocation
KRN Heat Exchanger has already secured Rs 122.40 crore through its anchor investors, which include BNP Paribas Financial Markets, Societe Generale, and Saint Capital Fund. The total offer size is divided as follows:
- 50% of shares are reserved for Qualified Institutional Buyers (QIBs)
- 35% for Retail Investors
- 15% for Non-Institutional Investors (NIIs)
This division ensures a broad allocation base and maintains high investor interest across segments.
Final Thoughts
The KRN Heat Exchanger IPO offers a unique opportunity for investors to become part of a fast-growing company in the HVAC industry. With an extensive product range, a solid client base, and expanding global operations, KRN is positioned for sustainable growth. The IPO proceeds will strengthen its ability to meet the rising demand for HVAC components in both domestic and international markets.
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