KRN Heat Exchanger and Refrigeration Sets IPO Price Band at ₹209-220 per Share

KRN Heat Exchanger and Refrigeration has set the price band for its upcoming initial public offering (IPO) at ₹209-220 per share. The public issue is scheduled to open for subscription on September 25, with the company targeting to raise ₹341.95 crore through the sale of 1.55 crore equity shares at the upper end of the price band.

IPO Details

The entire IPO consists of a fresh issue, meaning all proceeds will be directly received by the company. Investors can bid for a minimum of 65 shares, with subsequent bids in multiples of 65. Retail investors will need a minimum investment of approximately ₹14,300 for one lot (65 shares) and can invest up to ₹1,85,900 for 13 lots (845 shares), aligning with the regulatory cap of ₹2 lakh for retail participation in IPOs.

Before launching the public issue, KRN had raised ₹9.54 crore through a pre-IPO placement, which has adjusted the size of the fresh issue from 1.6 crore shares to the current 1.55 crore shares.

Use of Proceeds

The company plans to allocate ₹242.46 crore of the net proceeds from the IPO to establish a new manufacturing facility for its subsidiary, RNHVAC Products, at the Alwar plant in Rajasthan. The remainder will be used for general corporate purposes.

Business Overview

KRN specializes in manufacturing fin and tube-type heat exchangers tailored for the heating, ventilation, air conditioning, and refrigeration sectors. Their extensive product range includes condenser coils, evaporator units, header components, and more, produced at their facilities in Neemrana, Rajasthan.

Notable clients include industry leaders such as Daikin Airconditioning India, Schneider Electric IT Business India, and Blue Star, among others. In the fiscal year 2024, the company's top 10 customers accounted for 72.31% of its revenue, with the leading customer contributing 33.34% to its topline.

Financial Performance

KRN reported a net profit of ₹39 crore for the fiscal year 2024, reflecting a 20.9% increase from ₹32.3 crore the previous year. Revenue from operations also showed impressive growth, rising 24.6% to ₹308.3 crore.

KRN operates in a niche market with no direct peers among listed companies, positioning itself uniquely for potential growth. Holani Consultants is serving as the sole book-running lead manager for the IPO.