KRN Heat Exchanger IPO Date, Price, GMP Today, Key Details, Review

KRN Heat Exchanger and Refrigeration Ltd. is set to enter the public market with its IPO opening for subscription on September 25, 2024, and closing on September 27, 2024. The price band has been set between ₹209 and ₹220 per share, with the company aiming to raise ₹342 crore. Here’s a detailed breakdown of what potential investors should know.

KRN Heat Exchanger IPO Details

KRN Heat Exchanger IPO Important Dates

* - Tentative Dates

KRN Heat Exchanger IPO Share Allocation

The IPO will have the following share allocation:

KRN Heat Exchanger IPO Subscription Status

KRN Heat Exchanger IPO GMP Live**

**The GMP prices displayed here are purely for informational purposes related to the grey market. We do not engage in grey market trading, deal with grey market rates (sub2), nor do we endorse or recommend participating in such activities.

Company Background - KRN Heat Exchanger 

KRN Heat Exchanger and Refrigeration Ltd. is a leading manufacturer in the HVAC (Heating, Ventilation, and Air Conditioning) and refrigeration sectors, specializing in the production of fin and tube-type heat exchangers. Headquartered in Rajasthan, the company operates from a modern facility located in the RIICO Industrial Area, Neemrana.

KRN has built strong, long-term partnerships with prominent industry players like Daikin, Schneider Electric, Kirloskar, and Blue Star, demonstrating its reliability and commitment to quality. The company provides crucial components for cooling systems used in various industrial and commercial applications, offering innovative and energy-efficient solutions to meet growing market demands.

With a reputation for excellence and a focus on sustainability, KRN continues to play a vital role in advancing the cooling and refrigeration industry.

KRN Heat Exchanger Financial Performance

KRN Heat Exchanger IPO Strengths

• Strong Industry Partnerships: KRN Heat Exchanger has established enduring relationships with top players in the HVAC and refrigeration sectors, including Daikin, Schneider Electric, Kirloskar, and Blue Star. These collaborations highlight the company’s reliability and industry standing.

• Advanced Manufacturing Facility: The company operates from a state-of-the-art facility in Neemrana, Rajasthan, which is equipped to handle large-scale production and ensure high-quality output. Its modern infrastructure supports efficiency and scalability.

• Focus on Innovation and Quality: KRN is committed to delivering energy-efficient, high-performance heat exchangers. Its products are known for durability and compliance with stringent industry standards, reflecting its focus on innovation.

• Growing Market Demand: As the demand for HVAC and refrigeration products increases globally, KRN is well-positioned to capitalize on this growth with its specialized offerings and robust supply chain.

• Sustainable Solutions: KRN is actively involved in creating energy-efficient cooling solutions, addressing the rising demand for sustainable technologies in the industry.

KRN Heat Exchanger IPO Weaknesses

• Limited Market Presence: Despite strong partnerships, KRN Heat Exchanger’s presence is primarily concentrated in India. The company faces challenges in expanding into international markets, which may limit its growth potential.

• Dependence on Key Clients: A significant portion of KRN’s revenue comes from a few major clients like Daikin and Blue Star. This dependency could pose a risk if any key partnerships are reduced or lost.

• Sector Vulnerability: KRN operates within the HVAC and refrigeration sector, which is sensitive to economic downturns and market fluctuations. Changes in industrial demand or regulatory policies could adversely impact its business.

• Capital-Intensive Operations: KRN’s manufacturing process requires significant capital investment in machinery and technology, making it susceptible to operational cost fluctuations and increased capital expenditure.

KRN Heat Exchanger IPO Objectives

• Investment in Subsidiary: To allocate funds for strategic investments in KRN HVAC Products, facilitating growth and development.

• Debt Reduction: To utilize part of the proceeds for reducing existing debt, improving the company's financial health.

• Brand Visibility: To enhance brand recognition and credibility in the market by becoming a publicly listed company.

• Provide Liquidity: To offer existing shareholders an opportunity to liquidate their investments while providing new investors access to equity in the company.

Frequently Asked Questions (FAQs)

1. What is the price band for KRN Heat Exchanger's IPO?     

The price band is set at ₹209 to ₹220 per share.

2. When does the KRN Heat Exchanger IPO open and close?

The IPO opens for subscription on September 25, 2024, and closes on September 27, 2024.

3. What is the minimum lot size for applying to the IPO?

Investors can apply for a minimum of 65 equity shares in one lot.

4. How much capital is KRN aiming to raise through this IPO?

The company aims to raise approximately ₹342 crore.

5. What will the funds raised from the IPO be used for?

The funds will be used for investments in the company's subsidiary and general corporate purposes.

6. Who are the major clients of KRN Heat Exchanger?

KRN has established partnerships with prominent clients like Daikin, Schneider Electric, and Blue Star.

7. What are the financial highlights of KRN Heat Exchanger?

For FY 2024, the company reported revenue of ₹313.54 crore and a net profit of ₹39.07 crore.

8. Is KRN Heat Exchanger a good investment?

Investors should assess the company's financial health, growth prospects, and individual risk tolerance before making a decision.

9. What is the listing date for the shares?

The tentative listing date is set for October 3, 2024.

10. What is the share allocation for different investor categories?

Approximately 50% of shares are reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for high net-worth individuals (HNIs).

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