KRN Heat Exchanger and Refrigeration Limited IPO: Key Dates, Strengths, Risks & How to Apply

Daikin, Voltas, Schneider – if these names sound familiar, you've likely used products that rely on KRN Heat Exchanger and Refrigeration Limited. Specialising in manufacturing fin and copper tube heat exchangers, KRN plays a critical role in the Heating, Ventilation, and Air Conditioning (HVAC) system.

The company is now launching its Initial Public Offering (IPO) from September 25, 2024, to September 27, 2024. 

As KRN prepares to go public, here's everything you need to know about the company's IPO and its growth potential.

KRN Heat Exchanger IPO: Key Details

Objectives of the IPO:

KRN's IPO proceeds are primarily aimed at:

1. Setting up a new manufacturing facility in Alwar, Rajasthan.
2. Funding general corporate purposes, ensuring the company's operational flexibility as it scales production.

KRN Heat Exchanger and Refrigeration Ltd: Company Overview

Founded in 2017, KRN Heat Exchanger has evolved rapidly in the HVAC&R (Heating, Ventilation, Air Conditioning, and Refrigeration) industry. Its products, including copper and aluminium fin heat exchangers, condenser coils, and evaporator coils, serve various sectors, from domestic to industrial applications.

Major Events and Milestones:

2017: KRN was incorporated as a private limited company.

2019: The company began exporting products to international markets.

2022: It acquired CE certification, opening doors for the company to export to the European market.

Strengths of KRN Heat Exchanger

• Diverse Product Range: The company has expanded from a single-product focus to a multi-product portfolio, catering to a variety of needs in the HVAC&R industry.
• Experienced Leadership and Skilled Workforce: KRN's management, led by Promoter and Director Santosh Kumar Yadav, brings over 19 years of expertise in manufacturing heat exchangers. The company also benefits from a highly qualified team of engineers, including 29 diploma holders and 16 B. Tech. graduates, ensuring continuous innovation and operational efficiency.
• Quality Assurance: With a BS EN ISO-13585 certified production team, KRN upholds the highest standards of quality, ensuring reliability and compliance with global benchmarks.

Risks to Consider

• Customer Concentration Risk: In 2024, 72% of the company's total revenue is derived from its top 10 customers, creating a dependency on a limited client base.
• Lack of Long-Term Customer Contracts: The company operates without long-term agreements with its customers, which could lead to uncertainty in maintaining consistent business relationships.
• Supplier Dependency: Approximately 78% of total purchases come from the top 10 suppliers, potentially limiting the company's ability to negotiate better terms or diversify its sourcing.

KRN Heat Exchanger and Refrigeration Ltd: Financial Performance

KRN Heat Exchanger and Refrigeration Ltd reported strong financial results for FY24. The company's revenue increased to ₹313.54 crore in FY24 from ₹249.88 crore in FY23. Similarly, its profit after tax (PAT) rose to ₹39.06 crore in FY24 from ₹32.31 crore in FY23. These figures reflect the company's consistent growth over the period.

Please Note: The numbers are not comparable because the FY23 consolidated figures are not available

How to Apply for the KRN Heat Exchanger IPO?

To apply for the KRN Heat Exchanger and Refrigeration Ltd IPO via INDmoney, follow these steps:

• Download the INDmoney app and create a free account by completing the KYC process.
• Click on the INDstocks tab, followed by IPOs.
• In the 'Explore IPOs' section, find 'Live IPOs.'
• Click 'Apply' to view the key details of the IPO.
• Choose the number of lots you wish to apply for and continue with the application.
• Place your order via UPI. The funds for your IPO application will be held in your bank account until the shares are allocated.

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