KRN Heat Exchanger and Refrigeration IPO to open on September 25

KRN Heat Exchanger and Refrigeration IPO

Rajasthan-based KRN Heat Exchanger and Refrigeration has decided to open its initial public offering for subscription on September 25. The price band for the issue will be announced later this week.

The IPO comprises solely of a fresh issue of 1.55 crore equity shares by the company, with no offer-for-sale component. Hence, the entire issue proceeds will be received by the company.

The heat exchangers' maker will spend Rs 242.46 crore for setting up a new manufacturing facility by its subsidiary KRN HVAC Products at Alwar, Rajasthan. The remaining fresh issue money will be used for general corporate purposes.

The company already spent Rs 36.44 crore for the said manufacturing facility by July 15.

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In recent past, it had raised Rs 9.54 crore via pre-IPO placement of 4.77 lakh equity shares at a price of Rs 200 apiece. Hence, the fresh issue size has been reduced by 4.77 lakh shares.

If we consider Rs 200 per share as the upper price band, then the total IPO size may be around Rs 310 crore.

The company will launch its anchor book for a day on September 24, while the public issue will close on September 27.

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With manufacturing facility in Rajasthan, KRN Heat Exchanger manufactures fin and tube type heat exchangers for the heat ventilation air conditioning and refrigeration industry (HVAC&R).

The company's financial performance remained strong in the past years, with profit increasing by 20.9 percent year-on-year to Rs 39 crore in the year ended March 2024. Revenue during the fiscal year 2024 rose by 24.6 percent to Rs 308.3 crore, compared to Rs 247.5 crore in the previous fiscal.

The equity shares will debut on both BSE and NSE. Holani Consultants is the sole book running lead manager to the issue, while Bigshare Services is acting as the registrar to the offer.