KRN Heat Exchanger and Refrigeration Limited, a prominent player in the manufacturing and exporting of heat exchangers, is set to launch its Initial Public Offering (IPO) starting September 25, 2024. This Book Built Issue aims to raise a substantial ₹341.50 crores through the issuance of 155.23 lakh equity shares. The IPO subscription period will remain open until September 27, 2024, with the allotment expected to be finalized by September 30, 2024. The shares will be listed on both the BSE and NSE, with a tentative listing date around October 3, 2024.

The price band for the KRN IPO is fixed at ₹209 to ₹220 per share, and the minimum lot size is set at 65 shares, requiring a minimum investment of ₹14,300 for retail investors. High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹2,00,200, which covers 14 lots (910 shares).

KRN Heat Exchanger IPO GMP Today

The Grey Market Premium (GMP) for KRN Heat Exchanger and Refrigerator Limited's IPO is anticipated to be between ₹125 to ₹130, indicating strong interest based on the company’s financial performance. However, it's important to note that real trading does not take place based on GMP, and prices may vary based on demand and supply dynamics in the unorganized market.

KRN Heat Exchanger IPO Live Subscription Status Today

The KRN Heat Exchanger IPO will open for subscription on September 25, 2024, and updates regarding live subscription status will be available as the subscription period progresses.

KRN Heat Exchanger IPO Anchor Investors Report

In a show of confidence, KRN Heat Exchanger has successfully raised ₹100.1 crores from anchor investors at the upper price point of ₹220 per share. The company has allocated 45,50,000 equity shares to these investors, primarily from the Qualified Institutional Buyers (QIBs) reservation portion.

KRN Heat Exchanger IPO Allotment Date

The IPO allotment is set for September 30, 2024. Investors can check their allotment status through the Registrar’s website using their application number, PAN, or DP Client ID.

Objectives of KRN Heat Exchanger & Refrigerator Limited IPO

The proceeds from the fresh issue are earmarked for several objectives:

₹24,246.10 Lakhs for investment in KRN HVAC Products Private Limited for a new manufacturing facility in Neemrana, Alwar, Rajasthan.

General corporate purposes to enhance operational capabilities.

KRN Heat Exchanger IPO Review

KRN Heat Exchanger has established itself as a leader in the manufacture of aluminium/copper fins and tubes, providing essential components for the HVAC&R industry. The company’s leadership under Mr. Santosh Kumar Yadav, who boasts over 19 years of experience, contributes significantly to its operational prowess.

From a financial standpoint, KRN Heat Exchanger reported impressive revenue growth over the past three fiscal years:

Fiscal 2024: ₹31,354.12 Lakhs

Fiscal 2023: ₹24,988.51 Lakhs

Fiscal 2022: ₹15,822.53 Lakhs

The company's EBITDA and Profit After Tax (PAT) figures reflect robust profitability:

Fiscal 2024 EBITDA: ₹5,845.24 Lakhs; PAT: ₹3,906.86 Lakhs

Fiscal 2023 EBITDA: ₹4,931.75 Lakhs; PAT: ₹3,231.35 Lakhs

Fiscal 2022 EBITDA: ₹1,693.56 Lakhs; PAT: ₹1,059.04 Lakhs

For this IPO, KRN is offering shares with a pre-issue EPS of ₹8.69 and a post-issue EPS of ₹6.28. The pre-issue P/E ratio stands at 25.31x, and the post-issue P/E ratio is 35.03x. The company's Return on Capital Employed (ROCE) for FY24 is 31.21%, while the Return on Equity (ROE) is 40.86%, suggesting that the IPO is reasonably valued.

The current GMP indicates potential listing gains of 55% to 60%. Given the company's solid financial performance and growth prospects, investors may consider applying for the KRN Heat Exchanger and Refrigeration Limited IPO for both short-term gains and long-term investment.

Disclaimer

The information provided in this review is for educational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review does not take into account individual risk appetite or circumstances; readers are encouraged to seek professional advice before making investment decisions.

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