KRN Heat Exchanger and Refrigeration
MainboardNSE₹342 Cr issue
+113.64%
Listing gain over issue price
Issue size
₹342 Cr
1 lot at cut-off
₹14,300
Lot size
65shares
Open
25 Sep 2024
Close
27 Sep 2024
Allotment
30 Sep 2024
Listing
03 Oct 2024
Listing performance
Issue price
₹220
Listed at
₹470
Listing-day close
₹478.79
Latest price
₹1,018.50
Close on 23 Oct 2026
Listing gain
+113.64%
Return since issue
+362.95%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Sep 2024 – 27 Sep 2024
- Listing date
- 03 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹220 per share
- Lot size
- 65 shares
- Listing at
- NSE
- Total issue size
- ₹342 Cr
- Market cap at offer price
- ₹1,310 Cr
- Promoter holding
- 94.39% → 70.78% pre-issue → post-issue
- ISIN
- INE0Q3J01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Holani Consultants Pvt.Ltd.
- Registered office
- Plot No.F-46, 47, 48, 49 EPIP, RIICO Industrial Area, Neemrana, Alwar, Rajasthan
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 45,50,000 | — | — |
Application size
Minimum 65 shares per lot, in multiples, at ₹220
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 65 | ₹14,300 |
| Retail (max) | 13 | 845 | ₹1,85,900 |
| S-HNI (min) | 14 | 910 | ₹2,00,200 |
| S-HNI (max) | 69 | 4,485 | ₹9,86,700 |
| B-HNI (min) | 70 | 4,550 | ₹10,01,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
45,50,000
Anchor portion
₹100 Cr
at ₹220 per share
Valuation and performance
Valuation at offer price
₹220 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.88 | 6.56 |
| P/E (×) | 24.77 | 33.54 |
| Market cap | — | ₹1,310 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 29.68%
- ROCE
- 31.21%
- Debt / equity
- 0.45
- PAT margin
- 12.67%
- NAV per share
- ₹28.53
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About KRN Heat Exchanger and Refrigeration
KRN Heat Exchanger and Refrigeration Limited was incorporated on August 25, 2017, and commenced operations in June 2018. The company manufactures fin and tube type heat exchangers made primarily of copper and aluminium for the Heat Ventilation Air Conditioning and Refrigeration (HVAC&R) industry. Its product range includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils, and sheet metal parts. Heat exchangers transfer thermal energy from one fluid to another while ensuring the fluids do not mix, and find applications across steam power plants, chemical processing, food processing, HVAC systems, mining, pulp and paper, and metallurgy. The company generated revenue from operations of ₹15,611.46 Lakhs in FY 2021-22, ₹24,748.08 Lakhs in FY 2022-23, and ₹30,828.31 Lakhs in FY 2023-24 (consolidated). The company has a wholly-owned subsidiary, KRN HVAC Products Private Limited.
Company Analysis
from RHPKRN Heat Exchanger and Refrigeration Limited manufactures fin and tube type heat exchangers for the HVAC&R industry, operating in the thermal management and industrial cooling sectors.
KRN Heat Exchanger and Refrigeration Limited was incorporated on August 25, 2017, and commenced operations in June 2018. The company manufactures fin and tube type heat exchangers made primarily of copper and aluminium for the Heat Ventilation Air Conditioning and Refrigeration (HVAC&R) industry. Its product range includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils, and sheet metal parts. Heat exchangers transfer thermal energy from one fluid to another while ensuring the fluids do not mix, and find applications across steam power plants, chemical processing, food processing, HVAC systems, mining, pulp and paper, and metallurgy. The company generated revenue from operations of ₹15,611.46 Lakhs in FY 2021-22, ₹24,748.08 Lakhs in FY 2022-23, and ₹30,828.31 Lakhs in FY 2023-24 (consolidated). The company has a wholly-owned subsidiary, KRN HVAC Products Private Limited.
Heat Ventilation Air Conditioning and Refrigeration (HVAC&R)Thermal management and heat exchangeIndustrial cooling systemsCommercial air-conditioningProcess cooling equipmentData center coolingRailways/metro cooling systems
Objects of the Issue
- Investment in 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) ₹24,246.10 Lakhs p.22
- General corporate purposes [●] (to be finalized upon determination of the Issue Price) p.22
- Investment in our wholly owned subsidiary, KRN HVAC Products Private Limited for setting up a manufacturing unit (Proposed Project) p.73
- General corporate purposes p.73
- Investment in wholly owned subsidiary KRN HVAC Products Private Limited in the form of equity for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan for manufacturing bar and plate heat exchanger, oil cooling with blower, motor and roll band evaporator ₹24,246.10 Lakhs p.120
- General corporate purposes p.120
- Funding capex for the wholly owned subsidiary KRN HVAC Products Private Limited to set up a new manufacturing facility for manufacturing Bar & Plate Heat Exchangers, Oil Cooling Units with Blower & Motor, and Roll Bond Evaporators p.208
- General corporate purposes p.349
Issue Structure
- Total Issue
- Up to 1,55,23,000 Equity Shares aggregating up to ₹ [●] Lakhs (amount to be finalized)
- Fresh Issue
- Up to 1,55,23,000 Equity Shares of face value of ₹ 10/- each aggregating up to ₹ [●] Lakhs
- Offer for Sale
- NIL
- Price Band
- ₹ [●] per Equity Share (Floor Price) to ₹ [●] per Equity Share (Cap Price) - to be finalized and advertised at least 2 working days prior to Bid/Issue Opening Date
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares (to be determined and advertised)
- Face Value
- ₹ 10/- per Equity Share
Business Model
The company operates as an OEM (Original Equipment Manufacturer) supplier to major HVAC&R brands in India. It manufactures heat exchangers to customer specifications and sells them through purchase orders rather than long-term contracts. Revenue is generated from the sale of evaporator coils (37.49% of FY 2023-24 revenue), condenser coils (55.24%), headers/copper parts (1.52%), sheet metal parts (0.05%), and other operating revenue (5.70%). The company derives significant revenue from export markets, with export sales accounting for ₹4,526.64 lakhs in FY 2024.
Business Segments
Evaporator coils used in HVAC systems for heat exchange and cooling applications
Condenser coils used in air conditioning and refrigeration systems for heat rejection
Header and copper parts components for heat exchange systems
Sheet metal components for HVAC systems
Supply of heat exchangers for data centre cooling applications
Supply of heat exchangers and cooling coils for commercial air conditioning systems
Supply of heat exchangers for domestic/residential air conditioning units
Supply of cooling units and heat exchangers for heavy commercial vehicles, railways, and metro systems
Sale of raw materials like Copper Tube, RM Sheet and scrap sale
Evaporator coils manufactured for air conditioning and refrigeration applications. Quantity sold in FY 2024: 2,02,273 units.
Condenser coils manufactured for air conditioning and refrigeration applications. Quantity sold in FY 2024: 2,45,950 units.
Header and copper component parts for heat exchanger assembly. Quantity sold in FY 2024: 1,29,580 units.
Sheet metal components for manufacturing heat exchangers and refrigeration units. Quantity sold in FY 2024: 1,141 units.
Release heat into the surrounding environment, typically outdoor air, facilitating conversion of vapor into liquid state. These coils are designed with bent configurations and end plates for optimized efficiency and compactness in heating, ventilation, and air conditioning systems as well as refrigeration units.
Extract indoor heat from air and transfer it to refrigerant flowing through copper tubing. Fins on the coil increase surface area, improving heat conducting efficiency and facilitating better heat exchange between refrigerant and air. Used in cooling systems such as close control air conditioners, rooftops, showcasing units, and fan coils.
Precision-manufactured components using CNC technology (CNC tube bender, CNC end forming, CNC flute punching, Tube T-drill) for heat exchanger assembly. Headers serve as connection points in heat exchangers for fluid distribution.
Precision-cut and punched custom sheet metal components including end plates for in-house assembly of evaporator and condenser coils, as well as condensing units. Produced using hydraulic machines and advanced CNC punching machines.
Heat exchanger components used in HVAC systems to heat or cool air within conditioned spaces. Integrated into Air Handling Units (AHUs) to efficiently capture and transfer warmth or chill in air or water. Steam coils transfer thermal energy from steam to air passing over coil surface, used in air heating and processing systems.
The company manufactures condensing coils, evaporator coils, heating coils, and other HVAC parts and accessories used in air-conditioning, refrigeration, and heating systems for residential, industrial, commercial establishments, and vehicles.
Heat exchanger coils used in evaporator units for HVAC&R applications
Heat exchanger coils used in condenser units for HVAC&R applications
Copper header and component parts for heat exchangers
Sheet metal components for heat exchangers
Manufacturing of condenser coils, evaporator coils, and related components for air conditioning, heating, ventilation, refrigeration applications
Manufacturing of commercially-used heat exchangers including cassette size evaporator coils, condenser coils for air handling units, large evaporator coils for railways/buses/metros, data center evaporator coils, and special purpose coils for VRV applications
Export of coils and heat exchanger products to overseas markets
SWOT Analysis
Strengths
- • Strong revenue growth trajectory with CAGR of 25.46% over 3 years(p.36)
- • Diversified customer base across major HVAC brands with 113 customers served(p.39)
- • Growing international presence with export revenue CAGR of 44.71%(p.37)
- • Strong profitability with PAT CAGR of 54.52% over 3 years(p.27)
- • Increased production capacity with 292 to 514 machines installed(p.37)
- • Experienced management with deep industry expertise(p.142)
- • Qualified technical workforce supporting manufacturing capability(p.142)
- • Long-standing relationships with leading customers(p.142)
- • Rigorous quality control processes and certifications(p.143)
- • Consistent strong financial performance and growth trajectory(p.143)
- • Strong return on equity and capital employed(p.147)
- • Strong leadership with extensive industry experience(p.212)
- • Long-standing relationships with leading blue-chip customers(p.210)
- • Rigorous quality control and international certifications(p.213)
- • Consistent financial and operational growth(p.210)
- • Integrated end-to-end manufacturing under one roof(p.214)
- • High capacity utilization and modern manufacturing infrastructure(p.224)
- • Established manufacturing capability with increasing production capacity(p.357)
- • Strong revenue growth trajectory and market demand(p.357)
- • Concentration of revenue from established OEM customer base(p.357)
- • Improved operational efficiency and capacity utilization(p.357)
- • Improved profitability margins(p.351)
- • Established relationships with major OEM customers in HVAC & R industry(p.360)
- • Advanced manufacturing capabilities for specialized coils including 12-meter length and VRV applications(p.360)
- • Robust quality management systems with multiple testing measures(p.360)
- • Experienced engineering team and strong management(p.360)
- • Growing export sales demonstrating global competitiveness(p.360)
- • Increasing capacity utilization demonstrating operational efficiency(p.361)
Weaknesses
- • Excessive customer concentration with largest customer representing 33.34% of revenue(p.27)
- • Lack of long-term customer contracts creating revenue uncertainty(p.27)
- • Heavy dependence on limited number of suppliers for raw materials(p.27)
- • Lack of long-term supplier contracts creating supply risk(p.27)
- • Significant inventory build-up representing 37.02% of COGS(p.27)
- • Contingent liabilities of ₹2,189.91 Lakhs representing 16.63% of net worth(p.27)
- • Pending litigation against promoters including arbitration claim of ₹2.5 crore(p.50)
- • Non-compliance with RIICO export obligation of 33.33% minimum exports(p.47)
- • Delayed statutory dues payments with associated penalties and interest(p.52)
- • Provident Fund contribution shortfall exposing company to penalties and interest(p.52)
- • High dependence on working capital funded through bank borrowings(p.52)
- • Raw materials represent 73-83% of revenue; exposed to price fluctuations without hedging(p.54)
- • High inventory holding of volatile, price-sensitive raw materials at risk of obsolescence(p.55)
- • Wholly-owned subsidiary incurred losses in FY2024 and remains dependent on promoter capabilities(p.56)
- • Geographic concentration of 41-49% of revenue in single state (Rajasthan)(p.65)
- • All manufacturing units concentrated in single location (Neemrana, Alwar, Rajasthan)(p.67)
- • Possible substantial penalty for unauthorized land use change (warehousing instead of industrial)(p.68)
- • Promoters have provided personal guarantees for 100% of company debt (₹6,304.40 lakhs)(p.71)
- • Restrictive debt covenants limit operational and strategic flexibility(p.70)
- • History of delayed and erroneous regulatory filings with ROC(p.60)
- • Non-compliance with bonus act reporting requirements for years 2018-2022(p.62)
- • High dependence on a limited customer base(p.142)
- • Deteriorating working capital management(p.147)
- • Declining asset turnover efficiency(p.147)
- • Rising leverage ratio indicating increased debt burden(p.147)
- • Significant portion of machinery orders yet to be placed(p.134)
- • Heavy dependence on single largest customer(p.224)
- • Concentrated customer base creates revenue risk(p.214)
- • High dependence on imported raw materials(p.222)
- • Concentrated supplier base with limited diversification(p.224)
- • High concentration of receivables among top customers(p.357)
- • Significant inventory holding requirements impacting working capital(p.357)
- • Substantial dependence on imported raw materials(p.357)
- • High debt levels relative to equity(p.341)
- • Reliance on skilled workforce in tight labor market(p.350)
- • High dependence on limited number of raw material suppliers(p.360)
- • Significant customer concentration with top 5 customers representing 55.12% of sales(p.361)
- • Top 10 suppliers accounting for 77.99% of total purchases(p.361)
- • Outstanding litigation against promoter relating to alleged breach of non-solicitation agreement(p.373)
- • Another litigation against promoter for loan recovery from alleged non-payment(p.373)
Opportunities
- • Growing HVAC industry with Indian market reaching USD 689 million in 2023(p.19)
- • Strategic location advantage in Delhi-Mumbai Industrial Corridor with proximity to major cities(p.49)
- • Government incentives and subsidies under Rajasthan Investment Promotion Scheme(p.49)
- • Expansion into new manufacturing facility with proposed investment of ₹24,246.10 Lakhs(p.22)
- • Access to export promotion schemes including EPCG, RoDTEP and Duty Drawback(p.49)
- • Forward integration through subsidiary to capture value chain and enter distribution/sales(p.56)
- • Expansion into new product categories (Bar & Plate, Roll Bond) not currently manufactured(p.56)
- • Growing HVAC industry with favorable market trends driving demand for heat exchangers(p.61)
- • Data centre cooling market showing strong growth (15.60% of revenue in FY2024 vs 9.54% in FY2022)(p.63)
- • Capacity utilization improving from 60-78% (FY2023) to 84-85% (FY2024), indicating growth potential(p.69)
- • Export revenue growing significantly (15.68% of total in FY2024 vs 9.65% in FY2022)(p.68)
- • Expansion into railways and emerging customer segments(p.122)
- • Benefits from Rajasthan Investment Promotion scheme 2022(p.123)
- • Tax advantages through subsidiary structure under section 115BAB(p.123)
- • India's strong economic growth and manufacturing sector expansion(p.163)
- • Increased capital expenditure cycle and private investment(p.163)
- • Capacity expansion through new manufacturing facility(p.122)
- • Rapidly growing HVAC market in India with massive potential(p.179)
- • Explosive growth in Indian heat exchanger market(p.203)
- • Substantial infrastructure and building stock expansion(p.181)
- • Strong government push for manufacturing and industrialization(p.202)
- • Expansion into new product categories via subsidiary(p.208)
- • Growth in data centre demand driving HVAC requirements(p.189)
- • Strong international market expansion potential(p.216)
- • Rising demand for HVAC products due to climate change and urbanization(p.357)
- • Expansion of export markets and international presence(p.353)
- • Product diversification and market expansion(p.349)
- • Capacity to serve growing customer base with expanded production(p.357)
- • Development of high-margin product offerings(p.349)
- • Growing demand for heat exchangers in commercial and industrial applications(p.360)
- • Expansion of export markets with strong growth trajectory(p.360)
- • Rising summer temperatures and extended cooling seasons creating higher demand(p.364)
- • Growing real estate and commercial building sector demand for HVAC systems(p.364)
- • Data center cooling applications offering premium pricing opportunities(p.359)
Threats
- • Heavy dependence on imported raw materials from 5 countries (78.17% of purchases)(p.27)
- • Geopolitical risks from China including border tensions and export restrictions(p.42)
- • Currency fluctuations and transportation delays affecting overseas sourcing costs(p.27)
- • Risk of customers outsourcing manufacturing in-house or to competitors(p.47)
- • Downward industry trends and economic downturn risk affecting HVAC sector demand(p.47)
- • Risk of regulatory changes affecting export promotion schemes and benefits(p.50)
- • Obligation to maintain export performance under EPCG scheme or face duty reversal(p.49)
- • South Korea trade tensions and non-tariff barriers creating import challenges(p.42)
- • Raw material prices (copper, aluminium) subject to global market fluctuations beyond company control(p.54)
- • Heavy reliance on imports (78.17% of raw material purchases in FY2024) exposes to country risks(p.39)
- • Intense competition from international and domestic players with greater resources(p.58)
- • HVAC industry vulnerable to economic downturns and shifts in consumer preferences(p.62)
- • High dependence on specific end-use industries; commercial AC represents 69.84% of revenue(p.63)
- • Risk of technology obsolescence from microchannel and advanced heat exchanger designs(p.61)
- • Exposure to foreign exchange fluctuations with net outflow of ₹15,789.27 lakhs in FY2024(p.64)
- • Manufacturing disruptions possible from power supply interruptions or equipment failures(p.53)
- • Dependence on third-party transportation providers; strikes could disrupt operations(p.68)
- • Regulatory changes and GST implementation uncertainties affecting costs and compliance(p.82)
- • Delays in plant and machinery procurement and installation(p.121)
- • Currency fluctuation risk on imported equipment(p.133)
- • Price volatility and cost escalation risks(p.121)
- • Dependence on vendor supply and quotation validity(p.136)
- • Global geopolitical risks affecting supply chains and operations(p.161)
- • Slowdown in capital expenditure cycle and investment demand(p.165)
- • Raw material price volatility and supply chain risks(p.194)
- • Fouling reduces efficiency and increases environmental impact(p.194)
- • Import dependency creates country and policy risks(p.222)
- • Intense competitive pressure from established global players(p.198)
- • External economic and credit headwinds(p.195)
- • Global economic slowdown impacting export markets(p.167)
- • Commodity price volatility for raw materials(p.350)
- • Increasing competitive intensity in the industry(p.350)
- • Exposure to macroeconomic slowdowns and policy changes(p.350)
- • Foreign exchange fluctuation risks from export operations(p.321)
- • Disruption of raw material supply chains from overseas imports(p.357)
- • Dependence on material price fluctuations in copper and aluminum(p.359)
- • Currency exchange rate fluctuations affecting export competitiveness(p.359)
- • Competition from existing and potential organized and unorganized competitors(p.371)
- • Limited number of manufacturers in India producing large coils creating supply chain risks(p.360)
- • Regulatory and compliance requirements for environmental and labor laws(p.369)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Santosh Kumar Yadav | Promoter | 43.54% | — |
| Anju Devi | Promoter | 50.85% | — |
| Manohar Lal | Promoter | Negligible | — |
| Santosh Kumar Yadav | Promoter/Chairman & Managing Director | — | — |
| Anju Devi | Promoter/Whole-Time Director | — | — |
| Santosh Kumar Yadav | Promoter | 43.54% | — |
| Anju Devi | Promoter | 50.85% | — |
| Manohar Lal | Promoter | negligible | — |
| Santosh Kumar Yadav | Promoter/Chairman and Managing Director | — | — |
| Santosh Kumar Yadav | Promoter | 43.54% | — |
| Anju Devi | Promoter | 50.85% | — |
| Manohar Lal | Promoter | Negligible | — |
| Santosh Kumar Yadav | Promoter | 44.00% | — |
| Anju Devi | Promoter | 51.37% | — |
| Santosh Kumar Yadav | Promoter and Managing Director | — | — |
| Anju Devi | Promoter and Director | — | — |
Leadership
Santosh Kumar Yadav · Chairman and Managing Director
Sonu Gupta · Chief Financial Officer
Praveen Kumar · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
KRN Heat Exchanger and Refrigeration IPO FAQs
What is the lot size of KRN Heat Exchanger and Refrigeration IPO?
The minimum lot size of KRN Heat Exchanger and Refrigeration IPO is 65 shares. One lot costs ₹14,300 at the cut-off price.
When does KRN Heat Exchanger and Refrigeration IPO open and close?
KRN Heat Exchanger and Refrigeration IPO opened for subscription on 25 Sep 2024 and closed on 27 Sep 2024.
What is the listing date of KRN Heat Exchanger and Refrigeration IPO?
KRN Heat Exchanger and Refrigeration IPO listed on 03 Oct 2024.