Ahead of the issue opening, the company’s shares are trading with a GMP of Rs 240 in the unlisted market, which is a massive 110% premium to the issue price.
The price band for the IPO, which is completely a fresh equity sale of 1.55 crore shares, is fixed at Rs 220 at the upper end.
In the public offer, about 50% is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.
The company proposes to use the net proceeds from the IPO for investment in wholly-owned subsidiary KRN HVAC Products for setting up a new manufacturing facility at Neemrana, Alwar, in Rajasthan. The remaining amount will be used for other general corporate purposes.
KRN Heat Exchanger and Refrigeration manufactures fin and tube type heat exchangers for the heat ventilation air conditioning and refrigeration industry.Also Read: About 25% stocks in smallcap space correct up to 60% this year. Is it a sign of a healthy bull market?
Heat Exchangers manufactured by the company 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.
The company makes heat exchangers of various shapes and sizes as per the requirement of the customers and in the market. The sizes of heat exchanger tubes diameter manufactured ranges from 5MM to 15.88 MM.
Heat exchangers transfer thermal energy from one fluid to another, while ensuring that the fluids do not mix. This process is facilitated by conduction, enabling the heat exchanger to heat or cool a substance.
To expand the business and reap the benefits of forward integration, the company has incorporated a wholly owned subsidiary KRN HVAC Products to increase value-added products in the existing portfolio. KRN HVAC Products will focus on manufacturing certain types of heat exchangers that are currently not manufactured by the company.
In FY24, the company’s revenue from operations increased 25% year-on-year to Rs 308 crore, while net profit after tax rose 22% year-on-year to Rs 39 crore.
Holani Consultants is the sole book-running lead manager for the IPO.
