KRN Heat Exchanger and Refrigeration IPO gets strong interest, subscribed over 24 times on day 1

KRN Heat Exchanger and Refrigeration IPO

The initial public offering of KRN Heat Exchanger and Refrigeration has garnered strong interest from all types of investors on the first day of bidding, September 25. The Rs 342-crore IPO was subscribed 24.09 times with investors buying 26.48 crore equity shares against the offer size of 1.09 crore equity shares.

The heat exchanger manufacturer targets to raise Rs 342 crore solely via a fresh issue. Hence, the entire issue proceeds will be received by the company.

The price band for the public issue, which closes on September 27, has been fixed at Rs 209-220 per share.

Non-institutional investors and retail investors looked aggressive in the subscription numbers, buying 53.88 times, and 23.96 times the allotted quotas, respectively. The part set aside for qualified institutional buyers was also fully subscribed on the first day, as they picked 1.44 times their reserved portion.

On September 24, the Rajasthan-based company that manufactures fin and tube type heat exchangers for the heat ventilation air conditioning and refrigeration industry had received good response from institutional investors, as it raised Rs 100.10 crore via anchor book. Whiteoak Capital, Bandhan Mutual Fund, Saint Capital Fund, Holani Venture Capital Fund, Ashoka India Equity Investment Trust and Kotak MF were some of investors in the anchor book.

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KRN Heat Exchanger and Refrigeration makes several products including condenser coils, evaporator units, evaporator coils, header or copper parts, fluid and steam coils and sheet metal parts for customers like Schnieder Electric IT Business India, Kirloskar Chillers, Daikin Airconditioning India, Blue Star, Climaventa Climate Technologies and Frigel Intelligent Cooling Systems India.

The company will spend fresh issue proceeds mainly for setting up a new manufacturing facility at Alwar, Rajasthan by its subsidiary KRN HVAC Products, and the remaining funds for general corporate purposes.

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Holani Consultants is the sole book running lead manager to the issue.