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KRN Heat Exchanger’s Business Model
KRN Heat Exchanger primarily manufactures fin and tube-type heat exchangers, including copper and aluminum fins, copper tubes, and condenser and evaporator coils. These products are used across various sectors, including domestic, commercial, and industrial cooling and heating applications. They are also widely used in the air conditioning, ventilation, and refrigeration industries.
KRN Heat Exchanger IPO Details :
| KRN Heat Exchanger IPO Details | Description |
|---|---|
| IPO Date | September 25, 2024 to September 27, 2024 |
| Listing Date | Thursday, October 3, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹209 to ₹220 per share |
| Lot Size | 65 Shares |
| Total Issue Size | 15,543,000 shares (aggregating up to ₹341.95 Cr) |
| Fresh Issue | 15,543,000 shares (aggregating up to ₹341.95 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding Pre-Issue | 43,999,980 shares |
| Shareholding Post-Issue | 59,542,980 shares |
KRN Heat Exchanger IPO Timeline :
| KRN Heat Exchanger IPO Timeline (Tentative Schedule) | Date |
|---|---|
| IPO Open Date | Wednesday, September 25, 2024 |
| IPO Close Date | Friday, September 27, 2024 |
| Basis of Allotment | Monday, September 30, 2024 |
| Initiation of Refunds | Tuesday, October 1, 2024 |
| Credit of Shares to Demat | Tuesday, October 1, 2024 |
| Listing Date | Thursday, October 3, 2024 |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on September 27, 2024 |
Growth of the Cooling Industry and Global Warming
With rising global temperatures due to climate change, the demand for cooling industries is rapidly increasing. The air conditioning and refrigeration sectors, in particular, are seeing a surge in demand. KRN Heat Exchanger is well-positioned to capitalize on this growth, with a business model tailored to the industry’s needs, indicating a bright future ahead.
KRN Heat Exchanger IPO lot size information :
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 65 | ₹14,300 |
| Retail (Max) | 13 | 845 | ₹185,900 |
| S-HNI (Min) | 14 | 910 | ₹200,200 |
| S-HNI (Max) | 69 | 4,485 | ₹986,700 |
| B-HNI (Min) | 70 | 4,550 | ₹1,001,000 |
Major Clients of KRN Heat Exchanger
Some of the major corporate clients of KRN Heat Exchanger include Schneider, Kirloskar, Blue Star, and Deccan. Additionally, the company exports its products to global markets such as the UAE, USA, Italy, Germany, and Saudi Arabia. This highlights the company’s strong market presence and global reach.
Financials: Can You Benefit from the KRN Heat Exchanger IPO?
Now, let’s talk about the company’s financial performance. KRN Heat Exchanger has total assets worth ₹2,558 crore, with revenue of ₹313 crore and a profit after tax (PAT) of ₹39 crore, representing a healthy profit margin of 12%. Given its B2B business model, a 12% margin is commendable and indicates strong profitability. The company’s borrowing stands at ₹60 crore, with a debt-to-equity ratio of 0.45, showing financial stability.
Here is the Key Performance Indicator (KPI) information for KRN Heat Exchanger IPO :
| KPI | Values |
|---|---|
| Market Capitalization | ₹1,309.51 Cr |
| ROE (Return on Equity) | 40.86% |
| ROCE (Return on Capital Employed) | 31.21% |
| Debt/Equity Ratio | 0.45 |
| RoNW (Return on Net Worth) | 29.68% |
| PAT Margin (%) | 12.67% |
| KPI Date | As of March 31, 2024 |
Fresh Issue and Investment Opportunity
One of the key attractions of this KRN Heat Exchanger IPO is that it’s a 100% fresh issue. This means that all the money raised through the IPO will go directly to the company, allowing it to invest in new projects and manufacturing units. The company plans to use these funds to expand its production capacity by setting up new manufacturing facilities, which is crucial for its future growth.
Should You Invest in KRN Heat Exchanger IPO?
The KRN Heat Exchanger IPO offers a promising investment opportunity. The company’s growth potential, strong client base, and global market presence make it an attractive investment option. Additionally, the company’s solid financials and the growing demand in the cooling and heating sectors further bolster its appeal. Investors should view this IPO as a long-term investment option.
Listing Gains and Oversubscription Potential
There is a high likelihood of oversubscription for the KRN Heat Exchanger IPO due to the company’s past performance, strong market demand, and business growth. Investors can also expect potential listing gains when the shares are listed on October 3, 2024. After listing, investors may consider selling their shares for profit based on market trends.
KRN Heat Exchanger IPO GMP
The KRN Heat Exchanger IPO GMP (Grey Market Premium) is an important factor to consider before investing. As of now, the GMP suggests strong demand in the grey market, which could lead to substantial gains on listing day. Keeping an eye on the KRN Heat Exchanger IPO GMP will provide a good indication of investor sentiment.
Conclusion
In conclusion, the KRN Heat Exchanger IPO offers a great opportunity for investors interested in the manufacturing sector. This evergreen sector, driven by the increasing demand for cooling and heating solutions, is expected to grow significantly in the coming years. With strong financial backing and global expansion, KRN Heat Exchanger presents a secure and potentially profitable investment option for both short-term and long-term investors.
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