KRN Heat Exchanger and Refrigeration Ltd is preparing to launch its Initial Public Offering (IPO) on September 25, 2024, with the aim of utilizing the funds to fuel the company’s ambitious expansion plans. The IPO process will run until September 27, with a one-day bidding window for anchor investors scheduled for September 24, according to details outlined in the company’s Red Herring Prospectus (RHP).
KRN Heat Exchanger, headquartered in Rajasthan, specializes in the production of fin and tube-type heat exchangers, catering to the heating, ventilation, air conditioning, and refrigeration (HVAC-R) sector. These products are critical components in systems designed to manage air quality and thermal comfort in various settings, from residential to large industrial spaces.
The company’s entire manufacturing operations are concentrated in a single, unified facility, which spans two industrial plots within the RIICO Industrial Area in Neemrana, Rajasthan. This strategic location provides the company with logistical advantages and operational efficiencies, further strengthening its ability to meet rising market demands.
KRN Heat Exchanger’s upcoming IPO includes a fresh issue of 1.55 crore equity shares, with no Offer For Sale (OFS) component. The absence of an OFS means that all proceeds from the IPO will directly benefit the company, as opposed to being distributed to existing shareholders. The fresh issue is intended to generate funds for significant capital investments, particularly in its subsidiary, KRN HVAC Products.
A key focus of the capital raised through this IPO will be to finance the establishment of a new manufacturing facility in Neemrana, Alwar, Rajasthan. This new site is expected to boost the company’s production capacity, allowing it to scale its operations and meet growing market demand for its products. By increasing its manufacturing footprint, KRN Heat Exchanger aims to solidify its position within the competitive HVAC-R industry.
The company has fostered long-standing relationships with prominent industry players such as Daikin Air Conditioning India Pvt Ltd, Schneider Electric IT Business India Pvt Ltd, Kirloskar Chillers Pvt Ltd, Blue Star Ltd, and Climaventa Climate Technologies Pvt Ltd. These partnerships reflect the company’s reputation for quality and reliability, offering it a strong foundation for future growth.
In an effort to further bolster its financial standing before the IPO, KRN Heat Exchanger conducted a pre-IPO placement round last month, raising Rs 9.54 crore. During this round, the company issued 4.77 lakh equity shares at a price of Rs 200 per share. Most of the funds from this pre-IPO placement were raised by allocating shares to a variety of individual investors, helping the company shore up additional resources ahead of its public listing.
Holani Consultants has been appointed as the sole book-running lead manager for KRN Heat Exchanger’s IPO, overseeing the company’s inaugural public offering process. This strategic move is expected to not only generate significant capital for the company but also enhance its visibility and credibility in the market.
Overall, KRN Heat Exchanger and Refrigeration Ltd’s IPO marks a significant milestone in the company’s growth trajectory, setting the stage for future expansions and strengthening its position as a key player in the HVAC-R industry.
KRN Heat Exchanger and Refrigeration Ltd is a Rajasthan-based company specializing in the manufacturing of fin and tube-type heat exchangers for the heating, ventilation, air conditioning, and refrigeration (HVAC-R) industry. With a consolidated manufacturing facility in Neemrana, the company serves prominent clients like Daikin, Blue Star, and Schneider Electric, focusing on innovation and quality-driven solutions.
