KRN Heat Exchanger IPO: 7 Key Points to Know Before Investing

KRN Heat Exchanger IPO: 7 Key Points to Know Before Investing

The upcoming KRN Heat Exchanger IPO is generating considerable attention in the market, and there are several compelling reasons why investors should consider participating. HDFC Sky offers a seamless One-Click IPO feature, allowing you to invest with ease.

Here's everything you should know before investing in KRN Heat Exchanger's IPO:

1. Leading Industry Position

KRN Heat Exchanger is a well-established manufacturer of fin and tube-type heat exchangers, with a broad portfolio catering to industries like HVAC&R (Heating, Ventilation, Air Conditioning, and Refrigeration).

2. Diverse Clientele

The company has built an impressive client base, including reputed names like Daikin Airconditioning, Schneider Electric, Kirloskar Chillers, and Blue Star, offering a reliable and consistent demand for its products.

3. Global Export Market

In addition to its domestic success, KRN Heat Exchanger exports to key international markets, such as the USA, UAE, Italy, and Germany, among others, which diversifies its revenue streams and reduces risk.

4. State-of-the-Art Manufacturing

With a modern facility in Neemrana, Rajasthan, spread across 7,800 sq. mt., the company utilizes cutting-edge technologies like CNC Tube Bender and Vertical Expander, positioning it as a technologically advanced player in the industry.

5. Strong Financial Performance

KRN Heat Exchanger's financials indicate steady growth. The company’s assets, income, and profitability have demonstrated consistent performance, bolstered by efficient operations and cost management.

6. Growing Demand for HVAC&R

With global urbanization and industrial expansion, the demand for HVAC&R products continues to grow, offering significant growth potential for KRN Heat Exchanger.

7. Experienced Management Team

Led by Mr. Santosh Kumar Yadav and other experienced promoters, KRN Heat Exchanger is backed by leadership with deep industry knowledge and operational expertise.

About KRN Heat Exchanger

KRN Heat Exchanger and Refrigeration Ltd is a leading manufacturer specializing in the production of fin and tube-type heat exchangers. The company manufactures products like condenser coils, evaporator coils, and water coils, serving both domestic and global markets. Its customers include some of the largest names in the heating, ventilation, and air conditioning sectors. Additionally, the company’s ability to cater to various industrial and commercial demands positions it strongly in a growing sector. With its advanced manufacturing plant in Rajasthan and a customer base spread across numerous countries, KRN Heat Exchanger is well-poised for continued growth.

Key Details of the IPO

  • IPO Date: September 25, 2024 – September 27, 2024
  • Price Band: ?209 to ?220 per share
  • Face Value: ?10 per share
  • Lot Size: 65 shares
  • Total Issue: 15,543,000 shares, aggregating to ?341.95 crore

Financials of KRN Heat Exchanger

As of March 31, 2024, KRN Heat Exchanger boasts strong financials with robust asset figures of ?258.36 crore and consistent income growth. The company has been able to maintain steady profit margins despite the capital-intensive nature of the HVAC&R industry, thanks to its modern equipment and efficiency-focused operations.

  • Assets: ?258.36 crore
  • Revenue: ?313.54 crore
  • Profit After Tax: ?39.07 crore
  • Net Worth: ?131.65 crore
  • Total Borrowing: ?59.69 crore

Objectives of the IPO

The key objectives of the KRN Heat Exchanger IPO are:

1. Invest in the wholly owned subsidiary, KRN HVAC Products Pvt Ltd for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan, and

2. General corporate purposes.

Conclusion

KRN Heat Exchanger’s IPO offers a unique opportunity to invest in a company with a proven track record, strong industry presence, and ambitious plans for future growth. The company's sound financial health, cutting-edge manufacturing processes, and a diverse customer base make it an attractive proposition for both retail and institutional investors.

For those looking to invest with minimal hassle, HDFC Sky’s One-Click IPO feature simplifies the process, ensuring you don’t miss out on this promising investment opportunity.

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