Krn Heat Exchan IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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KRN Heat Exchan

CMP

592.85

+55.35 (10.30%)

  • DRHP
₹220

Offer Price

₹ 341.95 Cr

Issue Size

₹ 14,300

Min Investment

214.42x

Times Subscribed

65

Lot size

Time Line

  • 25
    Sep 2024
    Open
  • 27
    Sep 2024
    Close
  • 30
    Sep 2024
    Finalisation of Basis of Allotment
  • 01
    Oct 2024
    Initiation of Refunds
  • 01
    Oct 2024
    Transfer of Shares to Demat Account
  • 03
    Oct 2024
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • Expanding its customer base.

  • Focus on increasing operational efficiencies to improve returns.

  • Enhancing existing products base and product quality.

  • Regular Improvement in product design and development.

  • Increasing its global footprint and augmenting growth in current geographies.

Products & Services

  • KRN Heat Exchanger and Refrigeration Limited manufactures fin and tube type Heat Exchangers for the Heat Ventilation Air Conditioning and Refrigeration Industry.

Strengths

  • Promoters with strong leadership and supported by a highly experienced senior management.

  • Long standing business relationships with leading clientele.

  • Effective quality control checks.

  • Consistent financial performance.

  • Established Manufacturing facility.

Risks

  • Its revenue from operations has significantly increased from Rs.15,611.46 Lakhs in FY 2021-22 to Rs.24,748.08 Lakhs in FY 2022-23 resulting in growth of o ver 58% (YOY). Similarly, its revenue from operations has further increased from Rs. 24,748.08 Lakhs in FY 2022-23 to Rs. 30,828.31 Lakhs in FY 2023-24 leading to growth of 24% (YOY). Its revenue from operations from last three Financial Years are increasing by Compounded Annual Growth Rate (CAGR) of 25.46%. If the company is unable to sustain or manage its growth rate its business operations and results of operations may be adversely affected, and this rate of growth may not be achievable in the future.

  • Its Profit after Tax ("PAT") has significantly increased from Rs.1,059.04 Lakhs in FY 2021-22 to Rs.3,231.35 Lakhs in FY 2022-23 resulting in growth of over 205.12% (YOY). Similarly, our PAT has further increased from Rs.3231.35 Lakhs in FY 2022-23 to Rs.3906.86 Lakhs in FY 2023-24 leading to growth of 20.90% (YOY). Its PAT from the last three financial years is increasing by CAGR of 54.52%. If the company is unable to maintain these profit margins in future, its financial condition may be adversely affected.

  • The company is dependent on and derive 33.34%, 32.85% and 32.28% of its revenue for the Financial Year 2024, 2023 and 2022 from its single customer namely Daikin Airconditioning India Private Limited and further the company derives 72.31%, 70.87% and 75.82% of its revenue from the company top 10 key customers for the Financial Year 2024, 2023 and 2022 respectively. Delay or Cancellation of orders by any one or all of its top customers could have a material and adverse effect on its business, results of operations and financial condition.

  • The company does not have any long-term agreements with any of its customers. If its customers choose not to source their requirements from the company, it would lead to financial instability and operational uncertainty and its business and financial conditions may be adversely affected.

  • The company relies on limited number of suppliers and procure 14.94%, 17.29% and 17.46% of its raw materials for the Financial Year 2024, 2023 and 2022 from its largest supplier and further the company procure 57.73%, 57.98% and 52.38% of its raw materials from the company Top 5 suppliers and 77.99%, 78.48% and 70.07% of its raw material from its top 10 key suppliers for the Financial Year 2024, 2023 and 2022 respectively. Any delay in the supply of its raw materials by these suppliers may adversely affect the results of operations and financial condition.

Company Promoters

Promoters Holding

Issue For IPO
94.39%
Pre Holding

94.39%

Post Holding

-

Top Promoters Holding

Financials

All values in Cr

Mar-2024
Revenue 308.28 (-)
Gross Profit 59.72 (-)
Net Income 39.07 (-)
Assets 219.30 (-)
Liabilities 87.65 (-)

Book Running Managers

  • Holani Consultants Pvt Ltd

Registrar & Transfer Agent

Bigshare Services Pvt Ltd

Office No 56-2,
Pinnacle Busine.Park,
Mahakali Caves Road - Mumbai - 400093
Phone : 91-22-62638200 Fax: 91-22-63638299

Company Contact Information

Plot #F 46 47 48 49 EPIP RIICO,
Industrial Area Neemrana,
Alwar - 301705
Phone : +91 92570 25440 Email : cs@krnheatexchanger.com www.krnheatexchanger.com

Offer Related Information

Initial public issue of up to 1,55,43,000 equity shares of face value of Rs. 10/- each ("Equity Shares") of the company for cash at a price of Rs.220 per equity share (including a share premium of Rs.210 per equity share), aggregating upto Rs. 341.95 crores ("The Issue"). The issue will constitute 25% of the post issue paid up equity share capital of the company. The company, in consultation with the brlm, has undertaken a pre-ipo placement of 4,77,000 equity shares for cash consideration... More

News

  • No Data Found.

KRN Heat Exchan FAQ's

The shares of KRN Heat Exchan were first listed on the stock exchanges on June 26, 2024.

The total issue size of the KRN Heat Exchan IPO was 1,10,00,000 shares, amounting to Rs. 132 crore. they

The minimum lot size for KRN Heat Exchan public issue was 125 shares.

The price band of the IPO of KRN Heat Exchan was Rs. 114 to Rs. 120 per equity share.

KRN Heat Exchan IPO is a public issue through which the company raised approximately Rs. 132 crore by issuing around 1.1 crore equity shares to the public. After a successful IPO, the company’s shares are currently listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), where they are freely traded without restrictions.

Bigshare Services Private Limited is the registrar and share transfer agent of KRN Heat Exchan IPO.

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