KRN Heat Exchanger and Refrigeration Ltd IPO: GMP, Lot Size, Price Band & Key Dates
KRN Heat Exchanger and Refrigeration Ltd IPO: GMP, Lot Size, Price Band & Key Dates
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The Initial Public Offering (IPO) for KRN Heat Exchanger and Refrigeration Limited involves a book-built process worth Rs 341.95 crores, solely consisting of an issuance of 1.55 crore shares.
Investors can subscribe to the KRN Heat Exchanger IPO from September 25 to September 27, 2024, with allotment of shares expected to occur on September 30, 2024.
The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on October 3, 2024.
The price range for the KRN Heat Exchanger IPO is set between Rs 209 to Rs 220 per share, with a minimum application lot size of 65 shares.
Retail investors will need to invest a minimum of Rs 14,300. For small Non-Institutional Investors (sNII), the minimum investment is 14 lots (910 shares), totaling Rs 2,00,200. Big Non-Institutional Investors (bNII) are required to invest in 70 lots (4,550 shares), amounting to Rs 10,01,000.
Holani Consultants Private Limited serves as the lead manager for the KRN Heat Exchanger IPO. Bigshare Services Pvt Ltd acts as the registrar for the offering.
Summary of KRN Heat Exchanger and Refrigeration IPO Details
| Particulars | Details |
| IPO Date | September 25, 2024 to September 27, 2024 |
| Face Value | Rs 10 per share |
| Price Band | Rs 209 to Rs 220 per share |
| Lot Size | 65 Shares |
| Total Issue Size | 1,55,43,000 shares (aggregating up to Rs 341.95 Crores) |
| Fresh Issue | 1,55,43,000 shares (aggregating up to Rs 341.95 Crores) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre-issue | 4,39,99,980 |
| Shareholding post-issue | 5,95,42,980 |
Timeline of the main events of the IPO (Key dates)
| Particulars | Details |
| IPO Open Date | September 25, 2024, Wednesday |
| IPO Close Date | September 27, 2024, Friday |
| Basis of Allotment | September 30, 2024, Monday |
| Initiation of Refunds | October 1, 2024, Tuesday |
| The credit of Shares to Demat | October 1, 2024, Tuesday |
| Listing Date | October 3, 2024, Thursday |
| Cut-off time for UPI mandate confirmation | September 27, 2024, at 5 PM |
Lot size, shares applied, and their value by different Investor applicants
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 65 | Rs 14,300 |
| Retail (Max) | 13 | 845 | Rs 1,85,900 |
| S-HNI (Min) | 14 | 910 | Rs 2,00,200 |
| S-HNI (Max) | 69 | 4,485 | Rs 9,86,700 |
| B-HNI (Min) | 70 | 4,550 | Rs 10,01,000 |
HNI stands for High Net Worth Individual.
Various Investor categories and shares offered to them
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the total shares offered |
| Retail Shares Offered | Not less than 35% of the total shares offered |
| NII (HNI) Shares Offered | Not less than 15% of the total shares offered |
The Grey Market Premium (GMP) of the KRN Heat Exchanger IPO was recently updated on September 23, 2024, at 8:53 AM Hours IST. The price band ranges from Rs 209 to Rs 220 per share.
The estimated listing price which consists of the cap price plus today’s GMP of the KRN Heat Exchanger IPO is Rs 443.
The anticipated percentage increase/decrease per share is 101.36%. Retail Subject to Sauda for KRN Heat Exchanger IPO is Rs 11,000, and Small high net worth individual (HNI) Subject to Sauda is Rs 1,54,000.
KRN Heat Exchanger and Refrigeration Ltd is a well-established manufacturer of tube-type heat exchangers. They specialize in producing copper and aluminum fins, along with heat exchangers, water coils, condenser coils, and evaporator coils.
The company made heat exchanger tubes in diameters from 5 mm to 15.88 mm. Applications included but were not limited to, domestic and commercial HVAC as well as industrial applications.
KRN Heat Exchanger and Refrigeration Ltd has collaborated with many major clients, including Daikin Airconditioning India Pvt Ltd; Schneider Electric IT Business India Pvt Ltd; Kirloskar Chillers Private Ltd; Blue Star Ltd; Climaventa Climate Technologies Pvt Ltd; and Frigel Intelligent Cooling Systems India Pvt Ltd.
Another strength of the company is that its products export to countries such as the UAE, USA, Italy, Saudi Arabia, Norway, Czech Republic, Germany, and UK, among others.
KRN Heat Exchanger and Refrigeration Ltd manages a state-of-the-art manufacturing facility with a total area of 7,800 square meters at Neemrana in Rajasthan.
This firm has emphasized quality in its production so much that common items such as a hairpin bender and fin press machine are used, besides the CNC tube bender, and vertical expander.
Extract from the financial statements from the year ended March 31, 2024
| Particulars | As of 31-03-2024 (Rs in crores) |
| Assets | 258.36 |
| Revenue | 313.54 |
| Profit After Tax | 39.07 |
| Net Worth | 131.65 |
| Total Borrowing | 59.69 |
Key ratios as of March 31, 2024
| KPI (key performance indicator) | Values as of March 31, 2024 |
| ROE | 40.86% |
| ROCE | 31.21% |
| Debt/Equity | 0.45 |
| RoNW | 29.68% |
| PAT Margin (%) | 12.67 |
Where, ROE stands for Return on Equity; ROCE stands for Return on Capital Employed; RoNW stands for Return on Net Worth; and PAT stands for Profit After Tax.
The Red Herring Prospectus (RHP) of the KRN Heat Exchanger and Refrigeration Ltd IPO has disclosed some risks related to the company. It includes risks as below.
Risks related to Business
The income generated, from business operations has seen an increase from Rs 15,611.46 Lakhs in the fiscal year 2021 22 to Rs 24,748.08 Lakhs in 2022 23.
It leads to over 58% growth year on year. In the same manner, revenue from operations of the company increased from Rs 24,748.08 Lakhs in FY 2022 23 to Rs 30,828.31 Lakhs in FY 2023 24 as it showcases a year on year growth of 24%.
The company has averaged revenue growth to the tune of 25.46 percent per annum for the last three financial years. Profit after tax has also increased at a rate of 20.90 percent with growth rate computed at 54.52 percent per annum for the same period.
This would lead the company to experience some turbulence in its operations and results, and it would become really hard to compare the company with any other growth rate hereafter.
Risks related to customers
The company KRN Heat Exchanger and Refrigeration Ltd. Is dependent on its top ten customers, from where it derives its revenue. Thus, any delay or cancellation of order/s from any one of the ten customers could have a negative or adverse effect financially and operationally.
Further, there’s no long-term contract with its present customers. If its customers choose not to deal with the company, then it might lead to loss of business and revenue for the company.
Risks related to suppliers
The company is again trading with a limited number of suppliers for getting its raw materials. Any delay or disturbance in the supply of the raw materials may disturb the company operationally and financially.
Risks related to statutory and regulatory permits
The firm must obtain, renew, and consider obtaining or maintaining specific regulatory and statutory approvals in order to be able to operate the business. If such conditions are not met by the company, making business efforts and strategies would become a risky venture as such adverse conditions would affect the financial standing of the company.
Risks from parties who default in payment/s
If there are defaults or delay in the payment/s from the customers of the business, then it may lead to delay or loss of revenue for that period. This may hinder the company financially and operationally.
Is KRN Heat Exchanger and Refrigeration Ltd, a mainline IPO?
Yes, KRN Heat Exchanger and Refrigeration Ltd is a mainline IPO.
What is the share price range for KRN Heat Exchanger and Refrigeration Ltd’s IPO?
The IPO price range is set between Rs 209 and Rs 220 per share.
Who is the owner of KRN Heat Exchanger and Refrigeration Ltd?
Mr. Santosh Kumar is the founder and managing director of KRN Heat Exchanger and Refrigeration Ltd.
When is the KRN Heat Exchanger and Refrigeration Ltd IPO opening?
The KRN Heat Exchanger and Refrigeration Ltd IPO opens on September 25, 2024.
When is the KRN Heat Exchanger and Refrigeration Ltd IPO closing?
The KRN Heat Exchanger and Refrigeration Ltd IPO closes on September 27, 2024.
What are the objectives of the KRN IPO?
The funds raised from the issue of shares in the IPO will be used to establish a new manufacturing facility for KRN HVAC Products Pvt Ltd, a wholly-owned subsidiary. Further, it will be used for meeting general corporate purposes.
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