KRN Heat Exchanger & Refrigeration IPO to open on September 25

Rajasthan’s KRN Heat Exchanger and Refrigeration has announced gearing up to go public with its initial public offering (IPO) on September 25, 2024. The company, known for its fin and tube-type heat exchangers, will offer 1.55 crore equity shares with a face value of  Rs.10 each. While the final price band is still under wraps, the details  will be announced later this week. The offer will wrap up on September 27, with shares expected to hit the BSE and NSE on October 3, 2024.

Where are the funds going?

This IPO is focused on raising fresh capital—no existing shares are being sold. The company plans to use Rs.242.46 crore to set up a new manufacturing hub at Alwar, Rajasthan, through its subsidiary KRN HVAC Products. They’ve already invested Rs.36.44 crore into this facility by mid-July. The remaining funds will support general corporate needs.

Before the IPO, KRN Heat Exchanger raised Rs.9.54 crore through a pre-IPO placement of 4.77 lakh shares at Rs.200 each. This trims the fresh issue size slightly, but if the upper price band hits Rs.200 per share, the IPO could be around Rs.310 crore.

Company Overview & Financials

KRN Heat Exchanger produces a variety of HVAC&R components, including copper and aluminum fins, tubes, and coils. Their current facility in Neemrana, Rajasthan, covers 7,800 square meters. With clients like Daikin, Schneider Electric, and Blue Star, and exports to countries including the UAE, USA, and Germany, they’re well-positioned in the market.

Financially, the company is doing well. For FY 2024, revenue surged 24.6% to Rs.308.3 crore, up from Rs.247.5 crore the year before. PAT also saw a jump, increasing 20.9% to Rs.39 crore. 

Conclusion: KRN Heat Exchanger and Refrigeration’s IPO starts on September 25, offering 1.55 crore new shares. They’re investing heavily in a new manufacturing facility, which should fuel their growth. It will be interesting to keep an eye out for the listing on October 3, 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.