KRN Heat Exchanger and Refrigeration IPO

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25th – 27th Sep 2024
03 Oct 2024
₹209 – ₹220
Lot size 65 — ₹14300
342cr

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.