KRN Heat Exchanger IPO: Leading Heat Exchanger Solutions, Investment Opportunity

IPO Details

Opening Date
Close Date
Allotment Date
Listing Date
Face Value
Issue Price
Market Lot
Total Issue Size

How to Analyze an IPO: A Comprehensive Guide for Investors

Overview

KRN Heat Exchanger and Refrigeration Limited, a prominent player in the Indian heat exchanger industry, is launching its Initial Public Offering (IPO) as part of its growth strategy. Established in 2017 and headquartered in Neemrana, Rajasthan, the company specializes in the design, manufacturing, and servicing of high-performance heat exchangers and refrigeration equipment. With a robust product portfolio, KRN Heat Exchanger serves industries like HVAC, chemical, power, oil & gas, and more. The company’s strong technical expertise and commitment to quality have positioned it as a trusted partner for both domestic and international clients.

KRN Heat Exchanger and Refrigeration Limited’s IPO consists of a fresh issue of up to 1,55,23,000 equity shares with a face value of ₹10 each, aggregating to ₹[●] Lakhs. The funds raised through this IPO will be used for expansion of manufacturing facilities, working capital needs, debt repayment, and general corporate purposes. This IPO presents an excellent opportunity for investors looking to gain exposure in the industrial manufacturing sector, particularly in the growing heat exchanger market.

The company’s strategic location in Neemrana, a part of Rajasthan’s industrial hub, offers key advantages in terms of logistics and operational efficiency. With a dedicated in-house R&D team and cutting-edge technology, KRN Heat Exchanger focuses on innovation and customization, ensuring it meets the evolving needs of its clients.

The shares are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Potential investors should take note of the bid/issue opening and closing dates, and stay informed about the price band, which will be announced prior to the IPO.

Invest in KRN Heat Exchanger and Refrigeration Limited to be part of a dynamic, growing company that is shaping the future of industrial heat exchanger technology.

Company Financial

Restated Summary Statement of Assets and Liabilities

Category	As at June 30, 2024	As at June 30, 2023	As at March 31, 2024	As at March 31, 2023	As at March 31, 2022
ASSETS
Non-current assets
Property, Plant & Equipment	467.86	355.60	452.79	313.75	311.58
Right-of-use Assets	592.70	567.03	587.80	545.83	462.21
Goodwill	696.47	325.77	696.47	325.77	10.91
Other Intangible Assets	291.26	306.58	304.31	319.74	16.27
Investment in Associates	60.27	66.47	60.36	66.97	-
Financial Assets (Investments)	1,682.99	1,312.20	1,382.28	1,616.40	1,280.02
Other Financial Assets	96.22	109.93	94.89	80.54	57.30
Income Tax Assets	174.07	177.43	160.30	157.45	109.17
Other Assets	57.08	26.05	53.60	31.49	24.64
Total Non-current Assets	4,118.91	3,247.06	3,792.79	3,457.95	2,272.11
Current assets
Inventories	56.30	10.90	48.69	10.64	17.74
Financial Assets (Investments)	2,918.32	4,692.95	3,728.47	4,857.15	9,067.98
Trade Receivables	1,189.59	950.17	963.85	1,062.35	1,111.93
Cash and Cash Equivalents	836.49	1,220.26	887.05	832.52	1,096.13
Bank Balances Other than Cash	3.01	1.41	3.80	31.40	7.74
Other Financial Assets	906.96	734.71	826.80	651.87	319.85
Other Assets	311.66	329.42	277.97	376.77	512.25
Total Current Assets	6,222.33	7,939.81	6,736.63	7,822.70	12,133.63
Total Assets	10,341.24	11,186.87	10,529.42	11,280.65	14,405.74
EQUITY AND LIABILITIES
Equity
Equity Share Capital	3.81	2.66	3.01	2.66	0.86
Instruments Entirely Equity in Nature	15,090.76	15,562.54	15,573.26	15,562.54	15,562.54
Other Equity	(7,649.58)	(6,904.60)	(7,784.81)	(6,508.59)	(3,296.49)
Total Equity	7,444.99	8,660.60	7,791.46	9,056.61	12,266.91
Non-current liabilities
Financial Liabilities (Borrowings)	154.61	-	95.98	-	-
Lease Liabilities	470.88	477.34	467.06	444.58	408.67
Other Financial Liabilities	3.78	37.39	-	37.44	18.59
Contract Liabilities	28.77	-	29.01	-	-
Provisions	40.34	38.76	39.11	38.49	27.72
Total Non-current Liabilities	698.39	553.50	631.16	520.51	454.98
Current liabilities
Financial Liabilities (Borrowings)	102.00	-	115.21	-	-
Lease Liabilities	184.73	148.48	185.94	155.02	99.54
Trade Payables	989.47	879.94	880.90	873.17	956.14
Other Financial Liabilities	632.73	700.50	639.42	391.66	382.66
Contract Liabilities	16.18	28.36	20.93	35.04	22.69
Other Liabilities	189.41	133.27	185.67	166.69	162.22
Provisions	83.35	82.22	78.73	81.94	60.59
Total Current Liabilities	2,197.86	1,972.77	2,106.80	1,703.52	1,683.85
Total Liabilities	2,896.25	2,526.27	2,737.96	2,224.03	2,138.83
Total Equity and Liabilities	10,341.24	11,186.87	10,529.42	11,280.65	14,405.74

Statement of Profit and Loss

Category	Three months ended June 30, 2024	Three months ended June 30, 2023	Year ended March 31, 2024	Year ended March 31, 2023	Year ended March 31, 2022
Income
Revenue from Operations	3,222.22	2,389.82	11,247.39	8,264.60	5,704.90
Other Income	87.89	119.83	386.96	449.86	414.88
Total Income	3,310.11	2,509.65	11,634.35	8,714.45	6,119.78
Expenses
Cost of Materials Consumed	7.77	14.36	61.08	72.00	51.05
Purchases of Stock-in-Trade	1,195.15	897.02	4,554.75	3,301.95	2,224.54
Changes in Inventories of Stock-in-Trade	(7.55)	(1.33)	(11.63)	6.92	(7.55)
Employee Benefits Expense	589.19	485.78	2,012.16	2,129.82	1,708.49
Finance Costs	19.83	17.40	71.40	58.19	48.38
Depreciation and Amortisation Expense	121.67	91.30	420.59	285.79	170.09
Other Expenses
- Advertising and Sales Promotion	445.37	487.13	1,850.80	2,501.16	2,005.07
- Delivery and Related Charges	1,046.05	749.00	3,351.06	2,834.94	2,068.81
- Others	490.49	331.90	1,637.18	1,693.62	1,305.56
Total Expenses	3,907.96	3,072.56	13,947.38	12,884.40	9,574.45
Loss before Share of Loss of Associate, Exceptional Items, and Tax	(597.85)	(562.91)	(2,313.04)	(4,169.95)	(3,454.68)
Share in Net Loss of Associate	(0.09)	(0.50)	(6.61)	(0.10)	(1.02)
Loss before Exceptional Items and Tax	(597.94)	(563.41)	(2,319.65)	(4,170.05)	(3,455.69)
Exceptional Items	(13.07)	(0.67)	(30.59)	(9.26)	(173.20)
Loss before Tax	(611.01)	(564.08)	(2,350.24)	(4,179.30)	(3,628.90)
Tax Expense
- Current Tax	-	-	-	-	-
- Deferred Tax	-	-	-	-	-
Total Tax Expense	-	-	-	-	-
Loss for the Period/Year	(611.01)	(564.08)	(2,350.24)	(4,179.30)	(3,628.90)
Other Comprehensive Income (OCI), Net of Tax
Items not Reclassified Subsequently to Profit/Loss	5.46	-	93.17	(9.59)	-
- Re-measurement Gain/(Loss) on Defined Benefit Plans	(0.23)	1.26	1.12	(3.28)	(2.33)
Other Comprehensive Income/(Loss) for the Period/Year	5.22	1.26	94.29	(12.87)	(2.33)
Total Comprehensive Loss for the Period/Year, Net of Tax	(605.78)	(562.83)	(2,255.95)	(4,192.17)	(3,631.23)

Board of Directors of Company

Here are the Board of Directors for KRN Heat Exchanger and Refrigeration Limited

1.Mr. Santosh Kumar Yadav – Managing Director and Promoter
2. Mrs. Anju Devi – Director and Promoter
3. Mr. Manohar Lal– Director and Promoter

These individuals are the primary members involved in leading the company’s strategic and operational activities.

Company contact Details

Registered and Corporate Office: Plot No. F – 46, 47, 48, 49,
EPIP, RIICO Industrial Area,
Neemrana, Alwar, Rajasthan – 301705, India

Contact Person:
Mr. Praveen Kumar (Company Secretary and Compliance Officer)

Email: cs@krnheatexchanger.com
Telephone: +91-9257025440
Website: www.krnheatexchanger.com