RN Heat Exchanger and Refrigeration Limited is set to launch its Initial Public Offering (IPO) on September 25, 2024. The company is a leading manufacturer of heat exchangers and refrigeration components in India.

Key Details:

• Issue Type: Book-built Issue
• Issue Size: ₹341.95 crores (Fresh Issue)
• Price Band: ₹209-₹220 per share
• Face Value:₹10 per share
• Issue Open Date: September 25, 2024
• Issue Close Date: September 27, 2024
• Expected Listing Date: October 3, 2024
• Lead Manager: Holani Consultants Private Limited
• Registrar: Bigshare Services Private Limited

Timeline

IPO Open Date:	September 25, 2024
IPO Close Date:	September 27 , 2024
Basis of Allotment:	September 30, 2024
Refunds:	October 1, 2024
Credit to Demat Account:	October 1, 2024
IPO Listing Date:	October 3, 2024

About Company

RN Heat Exchanger and Refrigeration Limited is a leading manufacturer of heat exchangers and refrigeration components in India. The company caters to various industries, including automotive, HVAC, and refrigeration.

Core Business:

• Heat Exchangers: RN Heat Exchanger specializes in manufacturing a wide range of heat exchangers, including radiators, condensers, evaporators, and oil coolers.
• Refrigeration Components: The company also produces refrigeration components such as compressors, condensers, and evaporators.

Market Position:

• RN Heat Exchanger has a strong presence in the Indian market, serving a diverse range of customers.
• The company has a reputation for quality products and reliable service.

Future Outlook:

• The Indian manufacturing sector is growing, presenting opportunities for RN Heat Exchanger to expand its operations.
• The company may explore new markets or product segments to drive growth.
• Technological advancements in heat exchanger technology can provide new opportunities for RN Heat Exchanger.

Here are some resources to learn more about company

• Read DRHP Here

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Objective

The primary objectives of the RN Heat Exchanger and Refrigeration Limited IPO are:

1. Raising Capital: The company aims to raise ₹341.95 crores through the IPO, which will be used for:
   • Expansion: Funding the expansion of manufacturing facilities and distribution network.
   • Working Capital: Meeting the day-to-day operational expenses of the business.
   • General Corporate Purposes: Supporting other growth initiatives and strategic investments.
2. Brand Visibility: The IPO will increase the visibility of RN Heat Exchanger and Refrigeration Limited among investors and the general public, enhancing its brand recognition and credibility.
3. Part Exit for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing existing shareholders to partially exit their investment.

By achieving these objectives, RN Heat Exchanger and Refrigeration Limited aims to strengthen its financial position, expand its business, and enhance its market presence.

POSITIVE

• Diverse Product Range: The company offers a wide range of heat exchangers and refrigeration components, catering to various industries.
• Market Presence: RN Heat Exchanger has a strong presence in the Indian market with a focus on quality products and reliable service.
• Growth Potential: The Indian manufacturing sector is growing, providing opportunities for expansion.

NEGATIVE

• Competition: The heat exchanger and refrigeration components market is competitive, with both domestic and international players.
• Raw Material Costs: Fluctuations in the prices of raw materials used in manufacturing can impact profitability.
• Regulatory Changes: Changes in government regulations related to energy efficiency or emissions can affect the industry.

Financial Review of KRN Heat Exchanger and Refrigeration Limited

So, How Does KRN Heat Exchanger and Refrigeration Limited IPO Fare in Terms of Financials ?

Period Ended	Revenue	Expense	Profit After Tax	Assets
2022 (Standalone)	₹158.23	₹143.26	₹10.59	₹92.79
2023 (Standalone)	₹249.89	₹204.39	₹32.31	₹148.76
2024 (Consolidated)	₹313.54	₹257.81	₹39.07	₹258.36

Financial Highlights

Revenue Growth:

• The company’s revenue has grown significantly over the past two years. Revenue grew by 57.93% in 2023 and 25.47% in 2024 (consolidated). This indicates strong growth in the company’s business.

Profitability:

• Profit after tax has also shown impressive growth. Profit after tax grew by 205.10% in 2023 and 20.92% in 2024 (consolidated). This suggests that the company is not only growing its revenue but also becoming more profitable.

Profit Margin:

• The company’s profit margin has been relatively stable over the past two years, at around 6.70% in 2022 and 12.46% to 12.93% in 2023 and 2024 (consolidated). This indicates that the company is able to efficiently convert its revenue into profit.

Overall:

The financial performance of RN Heat Exchanger and Refrigeration Limited appears to be strong, with significant growth in revenue and profitability. The company’s profit margin is also healthy. However, it’s important to note that this is a limited financial review based on the provided data. It’s recommended to analyze the full IPO prospectus and consult with a financial advisor before making any investment decisions.

KRN Heat Exchanger and Refrigeration Limited IPO Valuation :

KPI	Values
ROE	40.86%
ROCE	31.21%
Debt/Equity	0.45
RoNW	29.68%
PAT Margin (%)	12.67

SWOT Analysis: KRN Heat Exchanger and Refrigeration IPO

Strengths

• Diverse Product Range: Offers a wide range of heat exchangers and refrigeration components.
• Market Presence: Has a strong presence in the Indian market with a focus on quality products and reliable service.
• Manufacturing Expertise: Proven expertise in manufacturing heat exchangers and refrigeration components.

Weaknesses

• Competition: The heat exchanger and refrigeration components market is competitive, with both domestic and international players.
• Raw Material Costs: Fluctuations in the prices of raw materials can impact profitability.
• Regulatory Changes: Changes in government regulations related to energy efficiency or emissions can affect the industry.

Opportunities

• Growing Market: The Indian manufacturing sector is growing, providing opportunities for expansion.
• Technological Advancements: Investing in research and development to adopt new technologies.
• Export Markets: Exploring opportunities to expand into international markets.

Threats

• Economic Downturns: A slowdown in the economy can impact demand for heat exchangers and refrigeration components.
• Competition from Global Players: Global companies may increase their presence in the Indian market.
• Regulatory Challenges: Stricter regulations or compliance requirements can increase operational costs.

COMPETITIVE ANALYSIS: MARKET PEERS

Key Competitors

• Alfa Laval: A global leader in heat transfer, energy efficiency, and water treatment solutions.
• Danfoss: A leading global provider of energy-efficient solutions for air conditioning, refrigeration, heating, and industrial applications.
• Johnson Controls: A global diversified industrial company with a strong presence in HVAC and building automation.
• Trane: A global provider of HVAC systems, services, and solutions.
• Domestic Competitors: Several domestic players operate in the Indian heat exchanger and refrigeration components market, including Thermax Limited and Kirloskar Industries Limited.

KRN Heat Exchanger and Refrigeration Limited IPO GMP

• Grey market premium as on 27-09-2024 = ₹274 /Share

Disclaimer:

• IPO Grey Market Premium (KRN Heat Exchanger and Refrigeration Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

KRN Heat Exchanger and Refrigeration Limited IPO

🔴 Live Subscription Status 🔴

27/09/2024 5:00 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	31,07,455	1.43	3.16	253.04
Non Institutional Investors(NIIs)	23,87,215	52.73	135.82	429.26
Retail Individual Investors(RIIs)	54,98,330	23.74	55.50	94.88
Employees	–	–	–	–
Total	1,09,93,000	23.73	58.14	212.20

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