Refex Refrigerants IPO bids start today

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Refex Refrigerants, a company engaged in the business of refilling non ozone depleting refrigerant gases, or hydrofluorocarbons (HFCs) is open for subscription with a public issue of 38 lakh equity shares of Rs 10 each at a premium of Rs 55 per share, aggregating Rs 24.70 crore. Ten per cent of the issue, aggregating Rs 2.47 crore is to be allotted to QIBs.

The issue closes on July 26. Post issue, the promoters stake will come down to 75 per cent.

The company proposes to utilise the net proceeds of the issue to part finance its Rs 36.15 crore expansion plan. The company is expanding its installed capacity of cylinders from the present 480 tonnes per annum to 3,000 tonnes per annum. Promoters are contributing Rs 5.95 crore towards the project and the company is raising Rs 5.50 crore though a term loan from Centurion Bank of Punjab, which has also appraised the expansion project.

Refex is in the business of refilling HFC's which are used in auto air-conditioners, room air-conditioners, refrigerators and refrigerating equipments.

The company's clients include Hyundai Motors, Godrej and Boyce manufacturing Co Ltd, Blue Star Ltd and Carrier Aircon Ltd.

The company has entered into a technical collaboration with Kaltech Engineering and Refrigerants Pvt Ltd, Singapore. Kaltech shall provide technical backup to Refex for the activities of the company.

Keynote Corporate Services Ltd is the book running lead manager for the issue and Ashika Capital Ltd is the co-lead manager for the issue.

The equity shares are proposed to be listed on the Bombay Stock Exchange.