KRN IPO: Key details of Rs 340 crore public issue from Rajasthan farmer’s son

The upcoming initial public offering (IPO) of KRN Heat Exchangers is set to launch on September 25, aiming to raise up to Rs 342 crore.
While there are many IPOs that make their debut on the stock exchanges, the public issue of KRN Heat Exchangers is a story of hard work and dedication.
The IPO is the journey of Santosh Kumar Yadav, a farmer’s son from Tijara, Rajasthan, from a small town to leading a major manufacturing company.
Yadav, now 44, began his career as a trainee operator at Lloyd Electric and Engineering. After gaining experience, he left the company in 2013 and co-founded Micro Coils and Refrigeration with an investor in Bhiwadi, Rajasthan.
After selling his stake in that venture in 2017, Yadav launched KRN Heat Exchangers and Refrigeration, focusing on manufacturing products for the HVAC (Heating, Ventilation, Air Conditioning, and Refrigeration) industry.
KRN Heat Exchangers and Refrigeration manufactures aluminium and copper fin tube condenser and evaporator coils, which are essential components used in heating, ventilation, and air-conditioning systems.
The company, which started manufacturing in 2018, now serves customers in 17 states across India and exports to nine countries, including the US, Canada, Italy, and Germany.
It has posted a consolidated revenue of Rs 308.28 crore for the financial year 2024 (FY24). KRN’s return on equity and return on capital employed stood at 40.86% and 31.21%, respectively, for the same period. Over the past three years, the company’s revenue from operations has grown at a compound annual growth rate (CAGR) of 25.46%.
KRN Heat Exchangers upcoming IPO has set a price band of Rs 209-220 per share. Through this IPO, the company aims to raise Rs 342 crore.
The allotment for the KRN Heat Exchanger IPO is set to be finalised on Monday, September 30, 2024. The company’s IPO is scheduled to be listed on the BSE and NSE, with a tentative listing date of Thursday, October 3, 2024.
In the unlisted market, shares of KRN were already trading at a premium of 101% as of September 23, showing strong demand.
Yadav, speaking in a media roundtable in August, said, “The company has been profitable since Day 1, and we don’t have any competitor in the listed space.”
The primary goal of the Rs 342 crore IPO is to fund the company’s expansion. Out of the total funds raised, Rs 242.46 crore will be invested in KRN’s wholly-owned subsidiary, KRN HVAC Products.
This investment will go towards setting up a new manufacturing facility in Neemrana, Alwar, Rajasthan. The new facility will focus on producing heat exchangers that the company does not currently manufacture, allowing KRN to diversify its product offerings.
The rest of the funds will be used for general corporate purposes. After the public issue, the promoter’s shareholding in the company will decrease from 94.39% to 70.79%.