KRN Heat Exchanger and Refrigeration Limited is launching its IPO with a fresh issue valued at ₹341.95 crore. This IPO will bring 1.55 crore equity shares to the market, all set to be subscribed between September 25, 2024, and September 27, 2024. The company is offering shares with a price band ranging between ₹209 to ₹220 per share. The shares will be listed on both the BSE and NSE, with the tentative listing date scheduled for October 3, 2024.
KRN Heat Exchanger IPO Overview
- Issue Size: ₹341.95 crore
- IPO Dates: September 25, 2024 - September 27, 2024
- Listing Date: October 3, 2024 (Tentative)
- Price Band: ₹209 to ₹220 per share
- Lot Size: Minimum of 65 shares
- Lead Manager: Holani Consultants Private Limited
- Registrar: Bigshare Services Pvt Ltd
Investment Details
Retail investors can start their bids at ₹14,300 for one lot (65 shares). Small non-institutional investors (sNII) can apply for a minimum of 14 lots (910 shares), which equates to an investment of ₹200,200, while big non-institutional investors (bNII) can bid for at least 70 lots (4,550 shares) amounting to ₹1,001,000.
Important Dates for KRN Heat Exchanger IPO
- IPO Open Date: September 25, 2024
- IPO Close Date: September 27, 2024
- Allotment Date: September 30, 2024
- Refund Initiation: October 1, 2024
- Credit of Shares to Demat: October 1, 2024
- Tentative Listing Date: October 3, 2024
Reservation of Shares
The shares have been reserved across different categories:
- Anchor Investors: 29.27% (45,50,000 shares)
- Qualified Institutional Buyers (QIB): 19.99% (31,07,455 shares)
- Non-Institutional Investors (NII): 15.36% (23,87,215 shares)
- Small NII (< ₹10L): 5.12% (7,95,738 shares)
- Big NII (> ₹10L): 10.24% (15,91,477 shares)
- Retail Individual Investors (RII): 35.37% (54,98,330 shares)
KRN Heat Exchanger IPO Anchor Investors
On September 24, 2024, KRN Heat Exchanger raised ₹100.10 crore from anchor investors. The anchor lock-in period for 50% of these shares ends on October 30, 2024, while the remaining lock-in expires on December 29, 2024.
About KRN Heat Exchanger and Refrigeration Limited
KRN Heat Exchanger is a prominent player in the heat exchanger market, specializing in the manufacturing of copper and aluminum fin and tube-type heat exchangers. Their product portfolio includes condenser coils, evaporator coils, and water coils, catering to both the domestic and international HVAC&R (Heating, Ventilation, Air Conditioning, and Refrigeration) industry. Some of their esteemed clients include Daikin, Blue Star, and Schneider Electric, with an export reach extending to the USA, UAE, Italy, Saudi Arabia, and more.
The company’s manufacturing unit is located in Neemrana, Rajasthan, and spans 7,800 sq. mt. Equipped with state-of-the-art technology, including CNC Tube Benders and Vertical Expanders, the company is poised to enhance production efficiency and scale.
Financial Performance
For the fiscal year ending March 31, 2024, KRN Heat Exchanger and Refrigeration Limited reported:
- Total Assets: ₹258.36 crore
- Revenue: ₹313.54 crore
- Net Profit: ₹39.07 crore
- Net Worth: ₹131.65 crore
- Borrowings: ₹59.69 crore
The company’s strong financial performance is reflected in its key performance indicators:
- Return on Equity (ROE): 40.86%
- Return on Capital Employed (ROCE): 31.21%
- Debt-to-Equity Ratio: 0.45
- Profit After Tax Margin: 12.67%
Peer Comparison and Market Position
As of March 31, 2024, KRN Heat Exchanger reported an EPS of ₹8.88 pre-IPO, which is expected to adjust to ₹6.56 post-IPO. With a P/E ratio of 24.78x pre-IPO and 33.52x post-IPO, the company appears competitively priced in comparison to industry peers.
Objectives of the IPO
The proceeds from the fresh issue will be allocated towards:
- Setting up a new manufacturing facility for its subsidiary, KRN HVAC Products Pvt Ltd, in Neemrana, Rajasthan.
- General corporate purposes to support future growth and operations.
Conclusion: Should You Invest in KRN Heat Exchanger IPO?
With its established market presence, reputed clientele, and solid financials, KRN Heat Exchanger is well-positioned for future growth, especially with its expansion plans. While the IPO is fully priced based on FY24 earnings, the company’s prospects make it a promising investment for medium to long-term investors.
Always consult a financial advisor and thoroughly review the company’s prospectus before making an investment decision.
KRN Heat Exchanger and Refrigeration Limited's IPO offers investors a unique opportunity to tap into the growing market for industrial cooling solutions. Understanding the key details and insights can help in making informed investment decisions.
