KRN Heat Exchanger and Refrigeration files papers for IPO

KRN Heat Exchanger and Refrigeration IPO papers filed with SEBI

Rajasthan-based KRN Heat Exchanger and Refrigeration has filed preliminary documents with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering.

The IPO will be fresh issue of 1,93,05,000 equity shares by the company, documents filed on January 16 show.

The Santosh Kumar Yadav and his wife Anju Devi-promoted company may also consider a pre-IPO placement of up to 4,77,990 equity shares.

If the company raises funds in pre-IPO placement, then the issue size will be reduced accordingly.

KRN manufactures fin and tube type heat exchangers for the heat ventilation air conditioning and refrigeration industry (HVAC&R).

It plans to use the proceeds for setting up a manufacturing facility at Alwar in Rajasthan at and for general corporate purposes.

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The unit will be set by its subsidiary, KRN HVAC Products.

KRN has a manufacturing facility in RIICO Industrial Area in Neemrana.

The company supplies its products, including condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils and sheet metal parts, to customers like Daikin Airconditioning India, Schnieder Electric IT Business India, Kirloskar Chillers, Blue Star, Climaventa Climate Technologies and Frigel Intelligent Cooling Systems India, the documents say.

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The company’s net profit grew to Rs 32.3 crore in March FY23 from Rs 10.6 crore in the previous year.

Revenue jumped 58.5 percent to Rs 247.5 crore, while earnings before interest, tax, depreciation and amortisation surged 191.2 percent to Rs 49.32 crore with a strong margin expansion of 907 basis points at 19.92 percent.

Holani Consultants is the lead manager to the issue.