Mon Sep 23 16:11:46 UTC 2024: ## KRN Heat Exchanger to Go Public, Targeting Expansion and Growth
**Neemrana, Rajasthan:** KRN Heat Exchanger and Refrigeration Ltd. is set to launch its Initial Public Offering (IPO), aiming to raise capital for expansion and further growth. The IPO, exclusively a fresh issue, will see the company directly benefit from the proceeds.
The funds will be used to invest in KRN HVAC Products Pvt Ltd, a wholly owned subsidiary, to establish a new manufacturing facility in Neemrana. Additional funds will be allocated for general corporate purposes.
KRN Heat Exchanger, established by promoters Santosh Kumar Yadav, Anju Devi, and Manohar Lal, specializes in manufacturing fin and tube-type heat exchangers for the HVACR industry. The company caters to various customer demands with tube diameters ranging from 5 mm to 15.88 mm, and its product range includes condenser coils, evaporator units, and more.
The company operates from two industrial plots in Neemrana, Rajasthan, and exports its products to several countries, including the UAE, USA, and Italy. It boasts long-term partnerships with key customers like Daikin Airconditioning India and Blue Star Ltd.
KRN Heat Exchanger has witnessed impressive growth in recent years, achieving a 41% CAGR in revenue and 92% CAGR in net profit between FY22 and FY24. The company’s robust performance is reflected in its FY24 RoE of 41% and RoCE of 31%.
The IPO is priced with a P/BV ratio of 7.71 times, calculated using its Net Asset Value (NAV). Despite lacking direct industry comparables, the valuation is justified by the company’s strong growth and potential for attractive returns.
The HVACR industry is predicted to experience sustained growth, driven by the increasing demand for energy-efficient solutions, advancements in technology, and the growth of infrastructure projects.
**DSIJ’s ‘Value Pick’ service recommends subscribing to the IPO with a long-term investment outlook, citing the company’s promising growth prospects.**
First Piper 