The highly anticipated Initial Public Offering (IPO) of KRN Heat Exchanger and Refrigeration is set to open for bidding on 25 September 2024, and will remain open until 27 September 2024. Here’s an you need to know about KRN Heat Exchanger IPO, including date, key details, minimum investment required, growth potential and whether you should subscribe.
KRN Heat Exchanger IPO Details
- Price Band: ₹209 to ₹220 per share
- Issue Size: The IPO includes the fresh sale of 1,55,23,000 equity shares, with the total issue size amounting to ₹341.50 crore at the upper end of the price band.
- Minimum Investment: Investors can apply for a minimum of 65 shares and in multiples thereafter.
- Listing Date: The shares are expected to be listed on BSE and NSE on October 3, 2024.
- Anchor Book: Opens on September 24, 2024.
The IPO’s proceeds will primarily be utilized to invest in KRN’s wholly-owned subsidiary, KRN HVAC Products, for setting up a new manufacturing facility, as well as for general corporate purposes.
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About KRN Heat Exchanger
KRN Heat Exchanger and Refrigeration is a leading manufacturer in the Heating, Ventilation, Air Conditioning, and Refrigeration (HVAC-R) industry. The company specializes in the production of copper and aluminum fins, copper tube heat exchangers, condenser coils, evaporator coils, and water coils. Their products are widely used in domestic, commercial, and industrial applications.
KRN boasts an impressive client portfolio, including heavyweights such as Daikin Air Conditioning India, Schneider Electric IT Business India, Kirloskar Chillers, and Blue Star Ltd. Additionally, the company has a global footprint with exports to countries like the UAE, USA, Italy, Germany, UK, and more.
Financial Performance
KRN Heat Exchanger has demonstrated consistent growth. For the financial year ending March 31, 2024, the company reported:
- Revenue: ₹313.54 crore
- Net Profit: ₹39.07 crore
This marks a strong improvement from FY23, where the company’s revenue stood at ₹249.89 crore, with a net profit of ₹32.31 crore. This growing financial strength and steady performance make KRN an attractive proposition for investors seeking to enter the HVAC-R sector.
Share Allocation
- 50% of the issue has been reserved for Qualified Institutional Buyers (QIBs).
- 35% is allocated for Retail Investors.
- The remaining 15% is reserved for Non-Institutional Investors (NIIs).
The company’s pre-IPO placement round raised ₹9.54 crore by issuing 4.77 lakh shares at ₹200 apiece, signaling confidence in the company’s growth potential from early investors.
Key Investment Highlights
- Sector Expertise: KRN operates in the essential and growing HVAC-R sector, which is witnessing significant demand, driven by urbanization and industrial expansion.
- Strong Client Base: The company enjoys long-standing relationships with industry giants, including Daikin and Schneider Electric, ensuring consistent demand for its products.
- Solid Financial Track Record: KRN’s revenue growth and improved profitability underscore the company’s operational efficiency and market positioning.
- Global Reach: KRN’s export markets provide a buffer against domestic fluctuations, ensuring diversified revenue streams.
Should You Subscribe to KRN Heat Exchanger IPO?
KRN Heat Exchanger presents an intriguing opportunity for both retail and institutional investors, particularly given its established market presence, strong financials, and expanding operations. The HVAC-R industry is poised for further growth, and KRN’s ability to cater to both domestic and international markets adds to its appeal. Additionally, the company’s ongoing expansion into new manufacturing facilities suggests a long-term commitment to scaling operations and enhancing profitability.
For potential investors seeking exposure to a robust sector with significant growth potential, subscribing to KRN Heat Exchanger’s IPO could be a sound investment choice. The company’s consistent financial performance, established client relationships, and international market reach provide a solid foundation for future growth.
Verdict: Subscribe for long-term gains.
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