KRN Heat Exchanger to raise ₹342 crore at price band of ₹209-220; issue to open on Sept 25

KRN Heat Exchanger and Refrigeration, a Rajasthan-based heat exchangers manufacturer, on Friday unveiled the price band for its upcoming initial public offering (IPO). The company has set the price band at ₹209-220 per share and looks to raise ₹341.95 crore at the upper end of the issue price. At the price, the market value of the company is pegged to be around ₹1,309.51 crore.

The IPO is a complete fresh issue of 1.55 crore equity shares with a face value of ₹10 each. There is no offer-for-sale component, so the entire IPO proceeds will be used by the company.

The IPO of KRN Heat Exchanger will open for subscription on September 25 and close on September 27, while the tentative date for listing of shares on the stock exchanges is October 3, 2024. The anchor book will open for a day on September 24. The allotment of shares to eligible applicants is expected to be finalised on September 30, 2024.

The company has reserved 50% of the shares in the public issue for qualified institutional buyers (QIB), 15% for non-institutional Institutional Investors (NII), and remaining 35% for retail investors. The lot isze is 65 shares and thereafter. The minimum application amount for retail investors is ₹14,300 and maximum is ₹185,900 for 13 lots or 845 shares.

Out of the raised capital, the heat exchangers' maker will invest ₹242.46 crore to set up a new manufacturing facility by its subsidiary KRN HVAC Products at Alwar, Rajasthan. The remaining fund will be used for general corporate purposes. The company has already spent ₹36.44 crore for this manufacturing facility till July 15.

KRN Heat Exchanger and Refrigeration is one of the leading manufacturers of fin and tube-type heat exchangers. The company manufactures copper and aluminium fins and copper tubes heat exchangers, water coils, condenser coils, and evaporator coils, which are used in the domestic, commercial, and industrial Heating, Ventilation, air conditioning and refrigeration (HVAC&R) industry. Its manufacturing facility is located in Neemrana, Rajasthan over an aggregated area of 7,800 square metre.

The company counts Daikin Airconditioning India Pvt Ltd, Schnieder Electric IT Business India Pvt Ltd, Kirloskar Chillers Private Ltd, Blue Star Ltd, Climaventa Climate Technologies Pvt Ltd and Frigel Intelligent Cooling Systems India Pvt Ltd among its key customers. It also exports products overseas to countries including UAE, USA, Italy, Saudi Arabia, Norway, Czech Republic, Germany, UK, and more.