KRN Heat Exchanger and Refrigeration raises over Rs 100 crore from anchor investors, IPO to open on September 25

KRN Heat Exchanger and Refrigeration IPO

Heat exchangers manufacturer KRN Heat Exchanger and Refrigeration has raised Rs 100.1 crore from 10 anchor investors on September 24. The said fund raising is ahead the issue opening on September 25.

Holani Venture Capital Fund is the largest buyer amongst the participants in the anchor book, buying 8.58 lakh equity shares worth Rs 18.87 crore at the upper price band, followed by Mint Focused Growth Fund, which picked 6.36 lakh shares worth Rs 14 crore.

The Rajasthan-based company in its filing to exchanges said it has finalised allocation of 45.5 lakh equity shares to anchor investors at a price of Rs 220 per equity share.

Whiteoak Capital Mutual Fund, Bandhan Small Cap Fund, VQ Fastercap Fund, and Ashoka India Equity Investment Trust bought 4.54 lakh shares worth Rs 10 crore each.

Saint Capital Fund acquired 4.81 lakh shares worth Rs 10.58 crore. Kotak Iconic Fund, and Ashoka Whiteoak Emerging Markets Trust were also buyers in the anchor book.

"Out of the total allocation of 45.50 lakh equity shares, 9.09 lakh shares were allocated to two domestic mutual funds," KRN said.

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KRN, which manufactures fin and tube type heat exchangers for the heat ventilation air conditioning and refrigeration industry, aims to mobilise Rs 341.95 crore through its initial public offering of 1.55 crore equity shares which comprised of entirely fresh issue.

The public issue will close on September 27. The price band for the offer has been fixed at Rs 209-220 per share.

The company will spend Rs 242.46 crore out of the net fresh issue proceeds for setting up a new manufacturing facility at Alwar, Rajasthan by its subsidiary KRN HVAC Products. And the remaining funds will be utilised for general corporate purposes.

KRN makes products like condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils and sheet metal parts, which are used for air conditioning, heating and ventilation, refrigeration, and process cooling applications.

Holani Consultants is acting as the merchant banker for the issue.