KRN Heat Exchanger and Refrigeration Ltd IPO
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KRN Heat Exchanger and Refrigeration Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 155.43 L | TBA | ₹ 54.33 L | ₹ 440 L | BSE | ₹ 341.95 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 25 Sep, 24 | 27 Sep, 24 | 65 | ₹ 13,585 | Book Building | 03 Oct, 24 |
KRN Heat Exchanger and Refrigeration Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Engineering |
| Sub Sector | NA |
| Issue Type | Book Building |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 101.31x | 7761500 | 786300710 |
| NII | 442.52x | 2328450 | 1030387280 |
| Retail | 99.47x | 5433050 | 540451015 |
| Employee | 0x | 0 | 0 |
| Total | 151.65x | 15543000 | 2357139005 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
KRN Heat Exchanger and Refrigeration Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 308.28 | 48.67 | 17.50 |
| EBITDA | 64.23 | 51.84 | 20.04 |
| PAT | 39.88 | 32.31 | 10.59 |
| Total Assets | 196.34 | 115.77 | 70.98 |
| Share Capital | 46.14 | 44.00 | 4.40 |
| Total Borrowings | 103.57 | 41.77 | 25.60 |
| Operating Activities (Net Cash) | 43.80 | 35.48 | 13.13 |
| Investing Activities (Net Cash) | 4.49 | 0.00 | 0.00 |
| Financing Activities (Net Cash) | 103.57 | 41.77 | 25.60 |
| Net Cashflow | 15.69 | 15.51 | 14.19 |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About KRN Heat Exchanger and Refrigeration Ltd
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.
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.
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.
Peer Comparison:
- No Listed Industry Peers
KRN Heat Exchanger and Refrigeration Ltd IPO Key Points
Strengths
- 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.
Risk
- 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.
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.
- 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.
How To Apply for KRN Heat Exchanger and Refrigeration Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.