Meet farmer’s son set to launch Rs 340 crore IPO, started as trainee operator, now supplies AC components to..

It is said that if you are dedicated to a task and work hard, you will get success in no time. This is absolutely true for Santosh Kumar Yadav of Tijara, a small town in Rajasthan. 44-year-old Santosh Kumar Yadav, a first-generation entrepreneur and farmer’s son completed his mechanical engineering and rose from being a trainee operator at Lloyd Electric and Engineering to becoming the founder of KRN Heat Exchangers and Refrigeration.

Today, Santosh Kumar Yadav not only supplies heat exchangers to companies like Daikin, Schneider, Kirloskar, and Blue Star but also exports them to nine countries worldwide including the US and Canada. After leaving Lloyd Electric and Engineering in 2013, Santosh Kumar Yadav, along with an investor, founded Micro Coils and Refrigeration in Bhiwadi, Rajasthan. In 2017, he then sold his stake in the company and incorporated KRN Heat Exchangers and Refrigeration.

When he left Micro Coils and Refrigeration, Santosh Kumar Yadav had a lot of cash. After this, he along with his wife Anju Devi founded KRN Heat Exchangers and Refrigeration. At that time, he set up a heat exchanger manufacturing plant in about 10,000 square meters of space in the RIICO Industrial Area of ​​​​Neemrana. Gradually, it expanded and started making all types of heat exchangers. Whether it is an evaporator coil, condenser coil, fluid and steam coil, or condensing and air cooling unit, he mastered everything. At present, he is preparing to set up another big factory.

Santosh got his first success when a Japanese company like Daikin became his customer. Today, most of the air conditioners manufactured by Daikin in India, whether industrial or institutional, have heat exchangers from the KRN Heat Exchanger. Apart from this, reputed companies like Schneider, Blue Star, Kirloskar, etc. became his customers. Today, he also exports to the US, Canada, and European countries like Italy, Germany and Poland.

Santosh Kumar Yadav's company is working fast on its expansion plan. The company is setting up another plant in Neemrana itself which will be 6 times bigger than the current plant. To raise capital for this, the company is entering the IPO market. The company has also received permission from the stock market regulator SEBI for the same. 

The upcoming initial public offering (IPO) of KRN Heat Exchangers is set to launch today, aiming to raise up to Rs 342 crore.

KRN Heat Exchanger and Refrigeration Ltd announced a price band of Rs 209 to Rs 220 apiece for its Rs 342-crore initial public offering (IPO) with the proceeds aimed at driving the company's expansion plans.

Funds to the tune of Rs 242.5 crore will be used for investment in wholly-owned subsidiary KRNC Products for setting up a new manufacturing facility at Neemrana, Alwar in Rajasthan and the remaining funds will be used for general corporate purposes.

KRN Heat Exchangers and Refrigeration, posted a consolidated revenue of Rs 308.28 crore in FY24, with return on equity and return on capital employed stood at 40.86% and 31.21%, respectively. The company has long-standing relations with Daikin Air Conditioning India Private Ltd, Schnieder Electric IT Business India Private Ltd, Kirloskar Chillers Private Ltd, Blue Star Ltd, and Climaventa Climate Technologies Private Ltd.

Santosh 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.”