Schedule of KRN Heat Exchanger and Refrigeration
| Issue open date | 25 Sep 2024 |
| Issue close date | 27 Sep 2024 |
| UPI mandate deadline | 27 Sep 2024 (5 PM) |
| Allotment finalization | 30 Sep 2024 |
| Refund initiation | 01 Oct 2024 |
| Share credit | 01 Oct 2024 |
| Listing date | 03 Oct 2024 |
| Mandate end date | 12 Oct 2024 |
| Lock-in end date for anchor investors (50%) | 30 Oct 2024 |
| Lock-in end date for anchor investors (remaining) | 29 Dec 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About KRN Heat Exchanger and Refrigeration
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, and various sheet metal parts, tailored to customer requirements. They produce heat exchangers in various sizes, suitable for applications such as residential and commercial air conditioning, data center cooling, automotive HVAC, refrigeration, and process cooling. To ensure durability and efficiency, they apply advanced coatings like nano and powder coatings, enhancing corrosion resistance and reducing maintenance. Their products meet stringent quality standards and are essential for high-performance cooling systems.
Financials of KRN Heat Exchanger and Refrigeration
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹341.95 crores |
| Fresh Issue | ₹341.95 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Investing in their wholly-owned subsidiary | 242.46 (70.91%) |
| General corporate purposes |
99.49 (29.09%) |
Strengths
- Strong leadership from promoters supported by an experienced senior management team
- Long-standing business relationships with leading clients in the industry
- Effective quality control processes ensuring high product standards
- Well-established manufacturing facility with consistent financial performance
Risks
- Significant revenue dependence on Daikin Airconditioning India and its top 10 customers poses a concentration risk.
- Heavy reliance on a few suppliers, with over 70% of imports from foreign countries, increases vulnerability to disruptions.
- No long-term supplier contracts and dependence on overseas vendors expose the company to supply chain risks.
- Lack of hedging against raw material price fluctuations may hurt margins if costs cannot be passed to customers.