KRN Heat Exchanger and Refrigeration Ltd announced on Friday that its upcoming initial public offering (IPO) will aim to raise Rs 342 crore, with a share price ranging from Rs 209 to Rs 220. The proceeds from this offering are intended to support the company’s strategic growth initiatives. The IPO will be open for public subscription from September 25 to September 27, while anchor investors will have the opportunity to place their bids a day earlier, on September 24.
According to estimates from brokerage firms, following the completion of the IPO, KRN Heat Exchanger’s market capitalization is projected to exceed Rs 1,300 crore. The company’s IPO will feature a fresh issuance of 1,55,43,000 equity shares valued at Rs 342 crore at the upper end of the designated price range. Out of these funds, approximately Rs 242.5 crore will be earmarked for investment in KRN HVAC Products, a wholly-owned subsidiary, to facilitate the development of a new manufacturing facility located in Neemrana, Alwar, Rajasthan. The remaining capital will be allocated for various general corporate purposes.
KRN Heat Exchanger specializes in producing fin and tube heat exchangers specifically designed for the heating, ventilation, air conditioning, and refrigeration (HVACR) sector. All production activities are centralized at a single manufacturing facility that spans two industrial plots within the RIICO Industrial Area in Neemrana, Rajasthan. The IPO allocation includes 50% of shares designated for qualified institutional buyers, 35% for retail investors, and the final 15% reserved for non-institutional investors.
Prospective investors can place bids for a minimum of 65 equity shares, with the option to increase their bids in multiples of 65 shares thereafter. The company has forged strong, enduring partnerships with notable firms such as Daikin Airconditioning India, Schneider Electric IT Business India, Kirloskar Chillers, and Blue Star, among others. In terms of financial performance, KRN Heat Exchanger reported a profit of Rs 39 crore and revenue of Rs 308 crore for the fiscal year ending in March 2024.
KRN Heat Exchanger and Refrigeration Ltd specializes in manufacturing fin and tube heat exchangers for the HVACR industry. Based in Neemrana, Rajasthan, the company operates a consolidated manufacturing facility and has established partnerships with industry leaders like Daikin and Schneider Electric. With a focus on innovation and growth, KRN aims to enhance its market presence through strategic investments.
