About Krn Heat Exchanger Ipo
The Initial Public Offering (IPO) of KRN Heat Exchanger and Refrigeration Ltd (KRN) marked a significant milestone in the Indian capital markets, reflecting the growing investor interest in the HVAC&R (Heating, Ventilation, Air Conditioning, and Refrigeration) sector. This topic delves into the key aspects of the KRN Heat Exchanger IPO, its performance, and the company’s prospects.
Company Overview
Established in 2017 and headquartered in Bhiwadi, Alwar, Rajasthan, KRN Heat Exchanger and Refrigeration Ltd specializes in manufacturing fin and tube-type heat exchangers. The company produces essential components such as condenser coils, evaporator units, and fluid coils, primarily catering to the HVAC&R industry. KRN serves a diverse clientele across residential, commercial, and industrial sectors, offering customized solutions to meet specific client needs. The company’s commitment to quality and innovation has positioned it as a prominent player in the HVAC&R industry contentReference[oaicite1].
IPO Details
The KRN Heat Exchanger IPO was launched with the objective of raising funds to finance the company’s expansion plans, including the establishment of a new manufacturing facility at Neemrana, Rajasthan. The IPO comprised a fresh issue of 1.55 crore equity shares, aggregating up to ₹341.95 crore. The price band for the IPO was set between ₹209 and ₹220 per share, with a minimum lot size of 65 shares. The subscription period commenced on September 25, 2024, and concluded on September 27, 2024 contentReference[oaicite2].
Investor Response
The IPO garnered an overwhelming response from investors, reflecting strong confidence in KRN’s business model and growth prospects. The issue was subscribed 214.42 times, with bids received for 2.35 crore shares against the 1.09 crore shares on offer. The Qualified Institutional Buyers (QIB) category was subscribed 253.04 times, the Non-Institutional Investors (NII) category was subscribed 431.63 times, and the Retail Individual Investors (RII) category was subscribed 98.29 times contentReference[oaicite3].
Listing Performance
On October 3, 2024, KRN Heat Exchanger and Refrigeration Ltd made its debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The shares listed at ₹480, a premium of 118.2% over the issue price of ₹220, indicating strong investor enthusiasm and market confidence contentReference[oaicite4].
Utilization of IPO Proceeds
The net proceeds from the IPO are primarily allocated towards funding the new manufacturing facility at Neemrana, which is expected to enhance the company’s production capacity and operational efficiency. Additionally, a portion of the funds will be utilized for general corporate purposes, supporting KRN’s strategic initiatives and growth objectives contentReference[oaicite5].
Financial Performance and Outlook
In the fiscal year 2024, KRN Heat Exchanger and Refrigeration Ltd reported a 21% increase in revenue and an 18% rise in profit after tax compared to the previous fiscal year, demonstrating robust financial performance and operational growth contentReference[oaicite6]. The company’s expansion plans, coupled with its strong market position, are expected to drive sustained growth in the coming years.
The successful IPO of KRN Heat Exchanger and Refrigeration Ltd underscores the growing investor interest in the HVAC&R sector and highlights the company’s potential for long-term growth. With a strong business model, robust financial performance, and strategic expansion plans, KRN is well-positioned to capitalize on emerging opportunities in the industry. Investors looking for exposure to the HVAC&R sector may consider KRN Heat Exchanger and Refrigeration Ltd as a promising investment opportunity.