KRN Heat Exchanger and Refrigeration Limited is coming up with an IPO with a fresh issue of 1.55 crore shares worth INR 341.95 crores. The company aims to invest in KRN HVAC for a new Neemrana facility and general corporate purposes. 

KRN Heat Exchanger IPO – Important Dates 

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KRN Heat Exchanger and Refrigeration Limited IPO – Company Profile 

KRN Heat Exchanger and Refrigeration Limited manufactures fin and tube-type heat exchangers for the HVAC&R industry using non-ferrous metals like copper and aluminum. Their product range includes condenser coils, evaporator units, fluid coils, and sheet metal parts. 

KRN manufactures customized heat exchangers for air conditioning, refrigeration, and process cooling applications. It serves diverse industries, including residential, commercial, automotive, defense, and medical equipment, offering products like condenser coils, evaporators, and fluid coils. 

KRN HVAC Products Private Limited will manufacture bar and plate heat exchangers, oil cooling units, and roll bond evaporators to enhance its product offerings. These products target applications in railways, defense vehicles, automotive, heavy machinery, and refrigeration systems. 

KRN Heat Exchanger and Refrigeration Ltd IPO Fundamental Analysis 

KRN Heat Exchanger and Refrigeration Limited’s financial analysis reveals a mixed performance. Revenue has consistently increased alongside equity, liabilities, and total assets, while profitability, EPS, and RoNW have improved, indicating strong business growth and investor confidence. 

• Revenue Trend: The revenue increased from ₹15,611.46 lakhs in March 2022 to ₹24,748.08 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 30,828.31 lakhs. 
• Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹1,059.04 lakhs in March 2022 to ₹3,906.86 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹2.41 in March 2022 to ₹8.69 by March 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has risen from 41.48% to 29.68%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. 

KRN Heat Exchanger and Refrigeration Limited IPO Financial Analysis 

KRN Heat Exchanger IPO Peer Comparison 

No listed companies in India engage in a business similar to that of KRN Heat Exchanger and Refrigeration Limited. Accordingly, it is impossible to provide an industry comparison concerning their company. 

KRN Heat Exchanger and Refrigeration IPO Objective 

KRN Heat Exchanger and Refrigeration Limited’s main objective is to invest in its subsidiary, KRN HVAC Products Private Limited, through equity to establish a new manufacturing facility in Neemrana, Alwar, Rajasthan. 

1. Investment in their wholly owned subsidiary, KRN HVAC Products Private Limited in the form of equity for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan (“Proposed Project” ): The company intends to utilize INR 242.46 Crores to invest in its subsidiary, KRN HVAC Products, for setting up a new Neemrana facility to manufacture bar and plate heat exchangers, oil cooling units, and roll bond evaporators. 

2. General corporate purposes: The company will deploy the balance of funds for general corporate purposes, including strategic initiatives, brand-building exercises, funding growth opportunities, and addressing ongoing corporate difficulties that may arise in business. 

KRN Heat Exchanger IPO Risks And Challenges 

KRN Heat Exchanger and Refrigeration Limited’s risk includes reliance on key customers, supply chain disruptions, and competition, necessitating ongoing innovation and strong relationships to sustain growth and financial stability in the HVAC market. 

• The company, an OEM supplier in the HVAC industry, has expanded its customer base and revenue through effective marketing and investments but faces challenges, including competition, economic fluctuations, and the need for ongoing innovation and compliance. 

• Increased production capacity, strategic pricing, and expanded international sales drive growth in PAT and margins. However, future growth may be challenged by supply chain disruptions, competition, and the need for continued innovation and capacity expansion. 

• Revenue reliance on a few key customers poses risks, as fluctuations in orders or customer insolvency could impact financial stability. Maintaining strong relationships and expanding the customer base is crucial to mitigate potential revenue declines. 

KRN Heat Exchanger and Refrigeration IPO – Industry & Market Potential 

India’s building stock is projected to grow from 2,100 million square meters in 2005 to 10,400 million square meters by 2030, driven by increased demand for HVAC due to expanding office and residential spaces and energy efficiency needs. 

By FY 2030, India’s pharmaceutical industry is projected to achieve an annual turnover of USD 130 billion, fueled by increased production of bulk drugs and formulations, driving demand for capital goods like heat exchangers. 

India’s rapidly expanding F&B industry, contributing about 3% to GDP, is projected to grow from USD 261 billion in FY 2021 to USD 470 billion by FY 2025, increasing the demand for advanced HVAC systems for sanitation, refrigeration, and air quality. 

KRN Heat Exchanger IPO – Type of Offer 

KRN Heat Exchanger and Refrigeration Limited is coming up with an IPO with a fresh issue of 1.55 crore shares worth INR 341.95 crores. The company aims to invest in KRN HVAC for a new Neemrana facility and general corporate purposes. 

KRN Heat Exchanger and Refrigeration Limited IPO Offer Size 

The offer size of KRN Heat Exchanger and Refrigeration Limited is INR 341.95 crores, consisting of a fresh issue of 1.55 crore shares. The company seeks funds to invest in KRN HVAC for a new Neemrana facility and general corporate purposes. 

KRN Heat Exchanger IPO Allotment Structure 

KRN Heat Exchanger and Refrigeration Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for KRN Heat Exchanger and Refrigeration IPO?

To apply for the KRN Heat Exchanger and Refrigeration Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the KRN Heat Exchanger and Refrigeration Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the KRN Heat Exchanger and Refrigeration Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

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How do you check KRN Heat Exchanger and Refrigeration IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the KRN Heat Exchanger and Refrigeration Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the KRN Heat Exchanger and Refrigeration Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the KRN Heat Exchanger and Refrigeration Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the KRN Heat Exchanger and Refrigeration Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

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KRN Heat Exchanger and Refrigeration Ltd IPO Offer Registrar

The registrar for the KRN Heat Exchanger and Refrigeration Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

BIGSHARE SERVICES PRIVATE LIMITED

Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Center,

Mahakali Caves Road, Andheri (East), Mumbai – 400093

Tel: +91 22-6263 8200

Email: [email protected]

Website: www.bigshareonline.com 

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KRN Heat Exchanger and Refrigeration IPO – FAQs