KRN Heat Exchanger and Refrigeration Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹220
Per ShareLot Size
65 Shares
Minimum Investment
₹14,300
Issue Size
₹341.95 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
KRN Heat Exchanger and Refrigeration Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
94.39%
Issue Type
Book Building
ISIN
INE0Q3J01015
About the Company
KRN Heat Exchanger and Refrigeration Limited manufactures fin and tube type Heat Exchangers for the Heat Ventilation Air Conditioning and Refrigeration Industry ("HVAC&R"). Heat Exchangers manufactured by us are made of non-ferrous metals primarily Copper and Aluminium. Its product range includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils and sheet metal parts. The Company manufactures heat exchangers of various shapes and sizes as per the requirement of the customers and / or demand in the market. The sizes of heat exchanger tubes diameter manufactured by the company ranges from 5MM to 15.88 MM.
Industry Overview
Heat exchangers transfer thermal energy from one fluid to another, while ensuring that the fluids do not mix. This process is facilitated by conduction, enabling the heat exchanger to heat or cool a substance. Heat exchangers provide a means of regulating temperature, enhancing efficiency, averting overheating, and mitigating other potential hazards, resulting in an improvement in safety standards. Being an efficient source of energy saving, heat exchangers find applications across a broad range of domestic and industrial applications such as steam power plants, chemical processing plants, food processing, HVAC systems, mining, pulp and paper, metallurgy etc. The global heat exchanger market is valued at USD 16.8 billion in 2023, with the industry experiencing a robust CAGR of 6.4% from 2019 to 2023 whereas the Indian market for heat exchanger reached USD 689 million per annum in 2023 with the annual industry turnover increasing by a CAGR of 10% between 2019 and 2023. This growth is primarily driven by the increasing global demand for sustainable, lowenergy consumption solutions that are also cost-effective.
Company History
KRN Heat Exchanger and Refrigeration Limited was incorporated as "KRN HEAT EXCHANGER AND REFRIGERATION PRIVATE LIMITED, a private limited company under the Companies Act, 2013, pursuant to a certificate of incorporation dated August 25, 2017 issued by Central Registration Centre, Manesar. Thereafter, the Company was converted from a private limited company to a public limited company, pursuant to a resolution passed in the extraordinary general meeting of its Shareholders held on March 17, 2023, and consequently, the name of the Company was changed to "KRN Heat Exchanger and Refrigeration Limited" by deletion of the word `Private'. A fresh certificate of incorporation consequent upon conversion from private company to public company dated April 03, 2023, was issued by the Registrar of Companies, Jaipur, Rajasthan to the Company bearing Corporate Identification Number "U29309RJ2017PLC058905".
Products & Services
- KRN Heat Exchanger and Refrigeration Limited manufactures fin and tube type Heat Exchangers for the Heat Ventilation Air Conditioning and Refrigeration Industry.
Growth Strategy
- Expanding its customer base.
- Focus on increasing operational efficiencies to improve returns.
- Enhancing existing products base and product quality.
- Regular Improvement in product design and development.
- Increasing its global footprint and augmenting growth in current geographies.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 2 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public issue of up to 1,55,43,000 equity shares of face value of Rs. 10/- each ("Equity Shares") of the company for cash at a price of Rs.220 per equity share (including a share premium of Rs.210 per equity share), aggregating upto Rs. 341.95 crores ("The Issue"). The issue will constitute 25% of the post issue paid up equity share capital of the company. The company, in consultation with the brlm, has undertaken a pre-ipo placement of 4,77,000 equity shares for cash consideration aggregating to Rs. 9.54 crores. The issue size as disclosed in the draft red herring prospectus, up to 1,60,00,000 equity shares has been reduced by 4,77,000 equity shares pursuant to the pre-ipo placement and accordingly the issue is of up to 1,55,43,000 equity shares and the minimum issue size shall constitute at least 10% of the post-issue paid-up equity share capital of the company, in compliance with rule 19(2)(b) of the securities contracts (regulation) rules, 1957, as amended ("scrr"). The Offer Price is Rs. 220 per equity share of face value of Rs. 10 each. The Offer Price is 22 times of the face value of the equity shares. Bid cane be made for a minimum of 65 equity shares and in multiples of 65 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Promoters with strong leadership and supported by a highly experienced senior management.
- Long standing business relationships with leading clientele.
- Effective quality control checks.
- Consistent financial performance.
- Established Manufacturing facility.
- Its revenue from operations has significantly increased from Rs.15,611.46 Lakhs in FY 2021-22 to Rs.24,748.08 Lakhs in FY 2022-23 resulting in growth of o ver 58% (YOY). Similarly, its revenue from operations has further increased from Rs. 24,748.08 Lakhs in FY 2022-23 to Rs. 30,828.31 Lakhs in FY 2023-24 leading to growth of 24% (YOY). Its revenue from operations from last three Financial Years are increasing by Compounded Annual Growth Rate (CAGR) of 25.46%. If the company is unable to sustain or manage its growth rate its business operations and results of operations may be adversely affected, and this rate of growth may not be achievable in the future.
- Its Profit after Tax ("PAT") has significantly increased from Rs.1,059.04 Lakhs in FY 2021-22 to Rs.3,231.35 Lakhs in FY 2022-23 resulting in growth of over 205.12% (YOY). Similarly, our PAT has further increased from Rs.3231.35 Lakhs in FY 2022-23 to Rs.3906.86 Lakhs in FY 2023-24 leading to growth of 20.90% (YOY). Its PAT from the last three financial years is increasing by CAGR of 54.52%. If the company is unable to maintain these profit margins in future, its financial condition may be adversely affected.
- The company is dependent on and derive 33.34%, 32.85% and 32.28% of its revenue for the Financial Year 2024, 2023 and 2022 from its single customer namely Daikin Airconditioning India Private Limited and further the company derives 72.31%, 70.87% and 75.82% of its revenue from the company top 10 key customers for the Financial Year 2024, 2023 and 2022 respectively. Delay or Cancellation of orders by any one or all of its top customers could have a material and adverse effect on its business, results of operations and financial condition.
- The company does not have any long-term agreements with any of its customers. If its customers choose not to source their requirements from the company, it would lead to financial instability and operational uncertainty and its business and financial conditions may be adversely affected.
- The company relies on limited number of suppliers and procure 14.94%, 17.29% and 17.46% of its raw materials for the Financial Year 2024, 2023 and 2022 from its largest supplier and further the company procure 57.73%, 57.98% and 52.38% of its raw materials from the company Top 5 suppliers and 77.99%, 78.48% and 70.07% of its raw material from its top 10 key suppliers for the Financial Year 2024, 2023 and 2022 respectively. Any delay in the supply of its raw materials by these suppliers may adversely affect the results of operations and financial condition.