About the Company:
KRN Heat Exchangers and Refrigeration Ltd manufactures fin and tube type heat exchangers for the Heat Ventilation Air Conditioning and Refrigeration Industry (“HVAC&R”). Heat exchangers manufactured by us are made of non-ferrous metals primarily Copper and Aluminium.
Company’s product range includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils and sheet metal parts.
Company is engaged in the business of manufacturing of heat exchangers and coils for Commercial Air conditioning and Packaged Air conditioning units which are primarily installed in places like data
cooling centres, process cooling equipment, railways/metros, and other commercial air conditioning units.
Company manufactures heat exchangers of various shapes and sizes as per the requirements of the customers and/or demand in the market.
Company has a wide customer base covering various parts of India as well as across the world.
Company has prestigious customers, including Daikin Airconditioning India Pvt Ltd, Schnieder Electric IT Business India Pvt Ltd, Kirloskar Chillers Pvt Ltd, Blue Star Ltd, Climaventa Climate Technologies Pvt Ltd and Frigel Intelligent Cooling Systems India Pvt Ltd among others.
Promoters Background:
Company is led by our Chairman and Managing Director, Mr. Santosh Kumar Yadav. Possessing Diploma in Business Management from the Institute of Management Technology, Ghaziabad, and a Diploma in Mechanical Engineering from the Board of Technical Education, Rajasthan, he brings an unparalleled blend of academic prowess and practical experience to our Company.
With over 19 years of rich experience in manufacturing heat exchangers and refrigeration units, he has consistently demonstrated exceptional operational skills. His commitment revolves around delivering excellent solutions to our customers, and offering customizations that comply with international standards.
His most notable leadership roles include serving at Lloyd Electric & Engineering Limited for 10 years, overseeing production processes, ensuring quality standards, and leading a team of engineers.
His operational skills were further exemplified during his deputation by Lloyd Electric & Engineering Limited at Luvata Czech plant in the Czech Republic for around two years starting in September 2008. During this time, he played a crucial role in implementing technical process at both the India and Czech Republic plants of LLOYD Europe.
Products Manufactured by the Company:
- Evaporator Coils.
- Condenser Coils.
- Fluid and Steam Coils.
- Condensing Units and Air-cooling Units.
- Headers / Copper Parts.
- Sheet Metal Parts.
Company’s Product Wise Revenue: (in Lakhs)
Key Operational Parameters of the Company:
Management Team:
- Mr. Santosh Kumar Yadav (Designation: Chairman & Managing Director)
- Mrs. Anju Devi (Designation: Whole-Time Director)
Objectives of the Issue:
Fresh Issue: (Rs.341.95 cr)
- Investment in our wholly owned subsidiary KRN HVAC Products Private Limited in the form of equity, for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan (“Proposed Project”).
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Investment in our wholly owned subsidiary, KRN HVAC Products Pvt Ltd in the form of equity for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan | 242.46 cr |
Peer Group Companies:
There are no listed companies in India that engage in a business like that of KRN Heat Exchangers and Refrigeration Ltd Accordingly, it is not possible to provide a comparison of key performance indicators of the industry with the Company.
Positives for the Company:
Promoters exhibit strong leadership and are supported by highly experienced senior management.
- Company’s management team comprised of our Promoters who are a qualified engineers and have extensive experience and know-how in the engineering sector, including, business development, operations, administration, marketing, and human resource management.
- Company’s founder, Promoter and Director Santosh Kumar Yadav has an experience of over 19 years in the business of manufacturing heat exchangers and refrigeration units.
Long‐standing business relationships with leading clientele.
- Company’s focus is on building sustained and long-term client relationships with our clients and constantly try to cater to customer needs with products in demand.
- Company’s experience in automated production facilities is focused on research and development, coupled with technologically advanced, quality consistency on-time delivery and cost-competitive manufacturing technology processes has resulted in repeat orders from our key customer groups.
Company Plans to Expand the Customer base.
- Company has served a total of 112 customers during the Financial Year 2022-23 wherein our top 10 customers account for 75.94% of our revenue from operations.
- During FY 22-23, Company sold products in 17 states in India and exported our products to 9 countries. Since at present we have a high dependency upon our top 10 customers to generate good sales, we intend to focus on deepening our penetration in our existing markets and thereby increase our presence by expanding our customer network.
Company plans to increase the existing product portfolio.
- To increase the existing portfolio, company has incorporated our wholly owned subsidiary namely KRN HVAC Products Private Limited on April 07, 2023 wherein we are setting up a new manufacturing facility to manufacture products that are at present not manufactured by us, using the Net Proceeds of the Issue.
Company plans to increase the Global footprint and augmenting growth in current geographies.
- With a view to further diversify company’s customer base and increase our market share, company intends to augment our sales in the markets where we sell our products as well as expand into new geographies.
- Over the last several years, Company has consistently expanded its customer network across Europe, and this continues to be one of the core strategies of our Company for the future.
- Having a wider product portfolio and an established brand presence in existing products provides confidence to new customers to engage with the Company.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 158.2 | 249.8 | 313.5 |
| Net Profit | 10.59 | 32.31 | 39.06 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 25th September 2024 |
| Issue Closes on | 27th September 2024 |
| Issue PriceRs. | Rs.209 -220 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 65 Shares |
| Minimum Investment | Rs.14,300 |
| Issue Constitutes | 26.10% |
| Issue Size | Rs.341.95 cr ($ 40 million) |
| Market Cap | Rs.1309 cr ($ 155 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,55,43,000 (Rs.341.95 cr) |
| Equity Shares Prior to the Issue | 4,39,99,980 |
| Equity Shares after the Issue | 5,95,42,980 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 8.69 | 25.31 | 29.68% | 28.53 | 0.45 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| KRN Heat Exchangers and Refrigeration Ltd specializes in the manufacturing of fin and tube-type heat exchangers for the HVAC&R (Heat Ventilation Air Conditioning and Refrigeration) industry. The company’s products are made using non-ferrous metals, primarily copper and aluminum. Their extensive product range includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils, and sheet metal components.
KRN caters to the commercial air conditioning sector, producing heat exchangers and coils for packaged air conditioning units, which are commonly installed in data cooling centers, process cooling equipment, railways/metros, and other commercial setups. The company customizes heat exchangers of various shapes and sizes based on market demand and customer requirements. KRN boasts a strong customer base across India and internationally, including prestigious clients such as Daikin Airconditioning India, Schneider Electric, Blue Star, and others. With plans to expand its customer base, product portfolio, and global footprint, KRN aims to drive growth. Investors may find this IPO appealing for long-term gains, given the company’s expansion strategy and established clientele. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 30th September 2024 |
| Initiation of Refunds | on or Before 1st October 2024 |
| Credit of Equity Shares: | on or Before 1st October 2024 |
| Listing Date: | on or Before 3rd October 2024 |
| Company Contact Info: |
|---|
| KRN Heat Exchangers and Refrigeration Ltd Plot No. F – 46, 47, 48, 49 EPIP, RIICO Industrial Area, Neemrana, Alwar Rajasthan- 301705, India. Tel No: +91 – 9257025440 Email: cs@krnheatexchanger.com Website: www.krnheatexchanger.com |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Center, Mahakali Caves Road, Andheri (East), Mumbai – 400093 Tel: +91 22-6263 8200 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
