10-Apr-2024
2 mins read
.jpeg)
KRN Heat Exchanger and Refrigeration IPO is offering a 100% book-built public issue. This upcoming IPO is offering a fresh issue of up to 1.6 Crore of equity shares. The face value is reported as Rs. 10 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for Non-Institutional Investors and the remaining 35% or more reserved for Retail Individuals. Application for public issue and subscription opening/closing dates and other important dates will be announced soon; however, keep in mind that the public offering is proposed to be listed on the NSE and BSE exchanges.
About the Company
The Company was incorporated as “KRN HEAT EXCHANGER AND REFRIGERATION PRIVATE LIMITED, a private limited Company under the Companies Act, 2013, pursuant to a certificate of incorporation dated August 25, 2017, issued by Central Registration Centre, Manesa. The Company manufactures fin and tube type heat exchangers for the Heat Ventilation Air Conditioning and Refrigeration Industry (“HVAC&R”). Heat exchangers manufactured by them are made of non-ferrous metals primarily Copper and Aluminium. The product range includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils and sheet metal parts. They manufacture heat exchangers of various shapes and sizes as per the requirements of the customers. The Company’s entire manufacturing operations are carried out at our consolidated manufacturing facility comprising 2 industrial plots situated in the RIICO Industrial Area, Neemrana, Rajasthan. However, the Company is led by our Chairman and Managing Director, Mr. Santosh Kumar Yadav.
Also Read | Vishal Mega Mart IPO: ICICI Bank and Kotak Bank Help to Arrange Share Sale
Objectives of the Public Offering
Company proposes to utilize the Net Proceeds towards funding the Investment in our wholly owned subsidiary, KRN HVAC Products Private Limited for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan (“Proposed Project”) and in other general corporate purposes.
Financials of the Company (Amt in Lakhs)
The Company reported net revenue of Rs 249.89 Crore, assets worth Rs 148.76 Crore, and profit after tax reported as Rs 32.31 Crore for the FY 22-23. It is clear that the PAT increased by 205.12%, and revenue rose by 57.92%.
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 18,177.58 | 14,875.91 | 9279.19 | 5239.53 |
| Revenue | 16,285.31 | 24,988.51 | 15,822.53 | 7,680.95 |
| Profit After Tax | 1932.97 | 3231.35 | 1059.04 | 246.56 |
| Net Worth | 7,957.08 | 5,957.01 | 2,553.15 | 1,306.02 |
| Total Borrowing | 4,517.04 | 3,664.43 | 2,212.21 | 1,665.02 |
Key Performance Indices of KRN Heat Exchanger and Refrigeration Limited
Key performance indicators of the Company reported a Return on Capital Employed as 50.46 %, a Return on Net Worth of 54.24 %, a Profit after-tax margin of 13.06 % and a Return on Equity as 75.94 % for the year ended March 2023. If we look at the EBITDA margin, it is reported as 19.93 % for the same FY.
Lead Manager, Registrar of IPO & Promoters of the Company
The IPO is managed by Holani Consultants Private Limited, which is the book-running lead manager. Bigshare Services Private Limited has been appointed as the registrar for the issue, and the promoters of the KRN Heat Exchanger and Refrigeration Limited are Mr. Santosh Kumar Yadav and Mrs. Anju Devi.
Also Read | BSE Market Cap Hits Rs 400 Lakh Crore Mark; Sensex and Nifty at All-Time High