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KRN Heat Exchanger IPO
KRN Heat Exchanger and Refrigeration Ltd
₹13,585 /65 sharesMinimum Investment
KRN Heat Exchanger IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| -- | ₹220.00 | ₹480.00 | ₹260.00 (118.18%) |
KRN Heat Exchanger IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 25 Sep ‘24 - 27 Sep ‘24 | ₹13,585 | 65 | ₹209 - ₹220 |
| Issue Size | IPO Doc |
|---|---|
| 341.51Cr | RHP PDF |
Subscription rate
As of 27 Sep'24, 04:00 PM
| Qualified Institutional Buyers | 223.48x |
| Non-Institutional Investor | 410.11x |
| Retail Individual Investor | 88.29x |
| Total | 196.39x |
About KRN Heat Exchanger
Founded in
2017
Managing director
Mr. Santosh Kumar Yadav
Parent organisation
KRN Heat Exchanger and Refrigeration Ltd
Strengths & Financials of KRN Heat Exchanger
Strengths
Risks
The company is ISO 9001:2015 certified for quality management systems, ISO 14001:2015 certified for environment management systems, and ISO 45001:2018 for health and safety management systems.
To add more products to its portfolio and thereby expand its operations and enhance forward integration, the company has established a subsidiary, KRN HVAC Products Private Limited.
KRN Heat Exchanger and Refrigeration has customer bases in both the domestic and international markets. Some popular clients of the company are Daikin Airconditioning India, Schneider Electric IT Business India, Kirloskar Chillers, Blue Star, Climaventa Climate Technologies, and Frigel Intelligent Cooling Systems India, among others.
The company claims to have an in-house facility to perform quality checks on its products. These include helium leak tests, water leak tests, contamination tests, salt spray testing, burst pressure testing, and pressure cycle testing. Additionally, the production team members hold BS EN ISO-13585 certification, which qualifies them for the testing of brazing—a critical process in heat exchanger manufacturing.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT) over the past few years. Revenue from operations increased from Rs 156.11 crore in FY22 (standalone) to Rs 247.48 crore in FY23 (standalone) to Rs 308.28 crore in FY24 (consolidated), while PAT increased from Rs 10.59 crore in FY22 (standalone) to Rs 32.31 crore in FY23 (standalone) to Rs 39.07 crore in FY24 (consolidated).
The company’s revenue significantly depends on a single customer, Daikin Airconditioning India Private Limited. This company contributed Rs 102.79 crore (33.34%) in FY24 (consolidated), Rs 81.31 crore (32.85%) in FY23 (standalone), and Rs 50.39 crore (32.28%) in FY22 (standalone) to the revenue from operations. Any loss of this major customer or slowdown in orders from this customer can be detrimental to KRN’s revenue and operations.
The company majorly relies on its top 10 customers for revenue generation. These customers contributed Rs 222.93 crore (72.31%) in FY24 (consolidated), Rs 175.40 crore (70.87%) in FY23 (standalone), and Rs 118.35 crore (75.82%) in FY22 (standalone) to revenue from operations. Any loss of any of these customers or a decline in business orders from them can adversely affect the company’s business operations and finances.
The company does not have long-term contracts with any of its customers. If these customers choose to stop sourcing from KRN, it could lead to financial instability, negatively affecting the functions of the company.
The company relies on vendors from Malaysia, South Korea, Thailand, Vietnam, and China for raw materials. In FY24, FY23, and FY22, imports accounted for 78.17%, 79.08%, and 72.16% of total raw material purchases, respectively. Any adverse geopolitical developments or changes in government policies regarding imports can negatively affect the sourcing of raw materials and harm the company's business.
A large portion of revenue is generated from Rajasthan. The state contributed Rs 127.14 crore (41.24%) in FY24 (consolidated), Rs 108.38 crore (43.79%) in FY23 (standalone), and Rs 76.81 crore (49.19%) in FY22 (standalone) to the revenue from operations. Any adverse developments in this region can negatively impact the company's business.
The company, its promoters, and its directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases can be detrimental to the company’s business prospects.
The company’s business depends on its manufacturing units located in Rajasthan. Any adverse changes in the business environment of this location, leading to the disruption in the manufacturing process or the shutdown of the units, can be detrimental to the company’s smooth operations and negatively affect its financial performance.
As of 15 July 2024, the company had outstanding borrowings of Rs 63.04 crore. Any inability to repay or service these loans can hurt the company’s operations.
KRN Heat Exchanger Financials
*All values are in Rs. Cr
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Application Details of KRN Heat Exchanger IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹209 - 220 | ₹2 Lakh |
| High Networth Individual | ₹209 - 220 | ₹2 - 5 Lakh |
For KRN Heat Exchanger IPO, eligible investors can apply as Regular.