KRN Heat Exchanger and Refrigeration Limited is a prominent manufacturer and exporter specializing in aluminium and copper fins, copper tubes, and various types of heat exchangers, including water coils, condenser coils, and evaporator coils. The company supplies its high-quality products to renowned OEMs in the heating, ventilation, air conditioning, and refrigeration (HVAC&R) sector.

The KRN Heat Exchanger IPO is a Book Built Issue amounting to ₹341.50 Crores, consisting entirely of a Fresh Issue of 155.23 Lakh Shares. The subscription period for this IPO is from September 25, 2024, to September 27, 2024. Allotment is expected to be finalized on or about September 30, 2024, with shares scheduled to list on the BSE NSE on or around October 03, 2024.

The share price band for the IPO is set between ₹209 to ₹220 per equity share, with a minimum lot size of 65 shares. Retail investors are required to make a minimum investment of ₹14,300, while High-Net-Worth Individuals (HNIs) must invest in 14 lots (910 shares), totaling ₹2,00,200.

Holani Consultants Private Limited acts as the book-running lead manager, while Bigshare Services Private Limited serves as the registrar for the issue.

Live Subscription Status

As of 04:25 PM on September 27, 2024, the live subscription status for the KRN Heat Exchanger IPO shows robust demand, with the IPO subscribed 110.23 times on its final day.

Anchor Investors Report

KRN Heat Exchanger has raised ₹100.1 Crore from anchor investors at a price of ₹220 per share, allocating 45,50,000 equity shares to them. The shares for anchor investors are allotted from the Qualified Institutional Buyers (QIBs) reservation portion.

Allotment Date and Procedure

The allotment date for the KRN Heat Exchanger IPO is set for September 30, 2024. Investors can check their allotment status by following these steps:

Navigate to the IPO allotment status page.

Select KRN Heat Exchanger & Refrigerator Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to check your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be utilized for the following purposes:

₹24,246.10 Lakhs for investment in their wholly-owned subsidiary, KRN HVAC Products Private Limited, to set up a new manufacturing facility in Neemrana, Alwar, Rajasthan.

General corporate purposes.

Financial Performance Overview

KRN Heat Exchanger has demonstrated impressive financial growth, with revenue figures for Fiscal 2024, Fiscal 2023, and Fiscal 2022 reported at ₹31,354.12 Lakhs, ₹24,988.51 Lakhs, and ₹15,822.53 Lakhs, respectively. The EBITDA for these years was ₹5,845.24 Lakhs, ₹4,931.75 Lakhs, and ₹1,693.56 Lakhs. The Profit After Tax figures for these years were ₹3,906.86 Lakhs, ₹3,231.35 Lakhs, and ₹1,059.04 Lakhs.

For the KRN Heat Exchanger IPO, the company is issuing shares at a pre-issue EPS of ₹8.69 and a post-issue EPS of ₹6.28. The pre-issue P/E ratio is 25.31x, while the post-issue P/E ratio is 35.03x. The company's Return on Capital Employed (ROCE) for FY24 is 31.21%, and the Return on Equity (ROE) is 40.86%, indicating that the IPO is attractively priced.

Investment Recommendation

The Grey Market Premium (GMP) for KRN Heat Exchanger indicates potential listing gains of 55% - 60%. Based on the company's robust financial performance and favorable valuation metrics, we recommend that investors apply for the KRN Heat Exchanger and Refrigerator Limited IPO for both listing gains and long-term investment prospects.

In summary, the KRN Heat Exchanger IPO presents a strong investment opportunity, backed by solid financials and a promising market position. 

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