The initial public offering (IPO) of KRN Heat Exchanger and Refrigeration will open for bidding on Wednesday, September 25 and the issue can be subscribed until Friday, September 27. The company shall be offering its shares in the fixed price band of Rs 209-220 apiece and investors can apply for a minimum of 65 equity shares and its multiples thereafter.
KRN Heat Exchanger and Refrigeration is a manufacturer of fin and tube-type heat exchangers. It manufactures copper and aluminium fins and copper tubes, heat exchangers, water coils, condenser coils, and evaporator coils. All the products offered are used in the domestic, commercial, and industrial heating, ventilation, air conditioning and refrigeration industry.
The IPO of KRN Heat Exchanger entirely includes a fresh sale of 1,55,23,000 shares, worth Rs 341.50 crore at the upper end of the price band. The anchor book opens on Tuesday, September 24. The net proceeds from the issue shall be utilized towards investing in the wholly owned subsidiary, KRN HVAC Products for setting up a new manufacturing facility and general corporate purposes.
KRN Heat's manufacturing facility is situated in Neemrana, Rajasthan over an aggregated area of 7,800 sq. mt. It uses the coil manufacturing machines including Hair Pin Bender, Fin Press Machine, CNC Tube Bender, and Vertical Expander. It manufactures heat exchanger tubes of different shapes and sizes from 5 mm diameter to 7 mm, 9.52 mm, 12.7 mm, and 15.88 mm.
Its client book includes names like Daikin Airconditioning India, Schnieder Electric IT Business India, Kirloskar Chillers, Blue Star, Climaventa Climate Technologies and Frigel Intelligent Cooling Systems India. The company also exports products overseas to countries including UAE, USA, Italy, Saudi Arabia, Norway, Czech Republic, Germany, UK, and more.
KRN Heat Exchanger reported a net profit of Rs 39.07 crore with a revenue of Rs 313.54 crore for the financial year ended on March 31, 2024. The company's bottomline came in at Rs 32.31 crore with revenue of Rs 249.89 crore for the fiscal year 2022-23.
The company raised about 9.54 crore through its pre-IPO placement by selling 4.77 lakh shares for Rs 200 apiece. It has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs) and 35 per cent for the retail investors. Remaining 15 per cent shares all be allocated towards non-institutional investors (NIIs).
Holani Consultants is the sole book running lead manager of the KRN Heat Exchanger IPO, while Bigshare Services is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE, with Thursday, October 3 as the tentative date of listing on the bourses.