RHP Link: https://www.holaniconsultants.
MUMBAI, 20 SEPTEMBER, 2024 (TGN): KRN Heat Exchanger and Refrigeration Limited (KRN Heat Exchangers) has fixed IPO price band in the range of Rs. 209 to Rs. 220 per equity share of the face value of Rs. 10 each. The KRN Heat Exchanger IPO date of subscription is scheduled for Wednesday, September 25, and will close on Friday, September 27. The allocation to anchor investors for the KRN Heat Exchanger IPO is scheduled to take place on Tuesday, September 24.
The floor price is 20.90 times of the face value and the cap price is 22 times of the face value of the equity shares. The price-to-earning ratio based on diluted EPS for financial year 2024 at the upper band of the price band is 25.32 times as compared to the Nifty 50 PE ratio of 22.90 times. The KRN Heat Exchanger IPO lot size is 65 equity shares and in multiples of 65 equity shares thereafter.
KRN Heat Exchanger IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.Tentatively, KRN Heat Exchanger IPO basis of allotment of shares will be finalised on Monday, September 30, and the company will initiate refunds on Tuesday, October 1, while the shares will be credited to the demat account of allottees on the same day following refund.
KRN Heat Exchanger share price is likely to be listed on BSE and NSE on Thursday, October 3. KRN Heat Exchanger IPO, which is worth Rs. 342 crore, comprises of a fresh issue of 15,543,000 equity shares. There’s no offer-for-sale component in the issue.The company in consultation with the book-running lead manager (BRLM), undertook a pre-IPO placement of 4,77,000 equity shares for cash consideration aggregating to Rs. 954 lakhs. The issue size has been reduced by 4,57,000 equity shares.
The company plans to use the proceeds from the Fresh Issue to finance an investment in its wholly owned subsidiary KRN HVAC Products Private Limited by providing equity. This investment will be used to establish a new manufacturing facility in Neemrana, Alwar, Rajasthan. The remaining funds will be allocated for general corporate purposes.
The lead manager for the KRN Heat Exchanger IPO is Holani Consultants Private Limited, and the registrar for the issue is Bigshare Services Pvt Ltd.
Santosh Kumar Yadav, Anju Devi, and Manohar Lal are the promoters of the company. As of the RHP date, Santosh Kumar Yadav and Anju Devi collectively possess 4,39,99,960 equity shares, which accounts for 94.39% of the company’s issued, subscribed, and paid-up equity share capital.
The firm produces heat exchangers with fins and tubes for the HVAC (heat, ventilation, air conditioning) and refrigeration industries. The firm mostly uses copper and aluminum as non-ferrous metals to make its heat exchangers. The company’s product line consists of sheet metal components, header/copper parts, evaporator units, evaporator coils, and fluid and steam coils.The company’s revenue from selling its main products for the Financial Years ending on March 31, 2024, 2023, and 2022 includes Evaporator Coils, Condenser Coils, Headers/Copper Parts, Sheet Metal Parts, and other operating revenue.The company relies on Daikin Airconditioning India Private Limited for 33.34%, 32.85%, and 32.28% of its revenue for the Financial Year 2024, 2023, and 2022, respectively. Additionally, 72.31%, 70.87%, and 75.82% of its revenue is derived from its top 10 key customers for the Financial Year 2024, 2023, and 2022.The manufacturing plant spans an aggregate area of 7,800 square meters and is located in Neemrana, Rajasthan. The firm employs vertical expander, CNC tube bender, fin press machine, hair pin bender, and other state-of-the-art coil production equipment.The company does not have any competitors in India that are engaged in a similar line of business.
