"KNR Heat Exchanger IPO Launch: A Comprehensive Guide for Investors"

KNR Heat Exchanger and Refrigeration Ltd, a leading manufacturer of copper and aluminum finned heat exchangers, is set to launch its Initial Public Offering (IPO). Specializing in products like water coils, condenser coils, and evaporator coils, the company serves major industries including HVAC and refrigeration. They also export to several countries like the USA, UK, UAE, Germany, and Italy​

IPO Details

• IPO Opening Date: September 25, 2024
• IPO Closing Date: September 27, 2024
• Issue Price: ₹209 to ₹220 per share
• Market Lot: 68 shares
• Face Value: ₹10 per share​(

Company Financials

KNR Heat Exchanger reported a solid financial performance for FY 2024:

• Revenue: ₹313.54 crore
• Profit After Tax (PAT): ₹39.07 crore
• Return on Equity (ROE): 40.86%
• Return on Capital Employed (ROCE): 31.21%​

Key Strengths

• Advanced manufacturing facilities and quality production.
• Established relationships with big clients like Daikin and Schneider Electric.
• Consistent financial growth, with revenue increasing by over 25% in recent years​

Risk Factors

• The company is heavily reliant on its top 10 customers.
• It operates with a limited number of suppliers, which could impact operations in case of disruptions​(

Objectives of the IPO

The funds from the IPO will be used to expand operations, repay debt, and finance working capital requirements​

Conclusion

Investors interested in the industrial and HVAC sectors may find KNR's IPO appealing due to its strong financials and established market position. However, it is essential to consider the risks associated with customer and supplier dependencies.

For more detailed financial metrics and updates, you can visit the official prospectus on NSE and BSE websites​