New Delhi: KRN Heat Exchanger and Refrigeration Ltd revealed on Friday that its Rs 342-crore IPO will have a price range of Rs 209 to Rs 220 per share, with the funds intended for advancing the company's growth strategies. The Rajasthan company will start its public share-sale on September 25 and end on September 27, with the anchor investors bidding starting on September 24 for one day. After the issue, brokerage houses estimate the company's market capitalisation to be more than Rs 1,300 crore.
In a statement, KRN Heat Exchanger announced that its upcoming IPO will include a new offering of 1,55,43,000 equity shares worth Rs 342 crore at the higher end of the price range. An amount of Rs 242.5 crore will be allocated for investing in the wholly-owned subsidiary KRN HVAC Products to establish a new manufacturing facility in Neemrana, Alwar, Rajasthan. The rest of the funds will be utilized for general corporate objectives.
The company produces heat exchangers of the fin and tube type for the HVACR industry. All manufacturing activities take place at one consolidated manufacturing facility made up of two industrial plots located in the RIICO Industrial Area, Neemrana, Rajasthan. 50 pc of the total amount is allocated for qualified institutional buyers, 35% for retail investors, and the remaining 15 pc for non-institutional investors.
Investors have the option to make bids for at least 65 equity shares and can bid in increments of 65 shares afterwards. The company has established longstanding partnerships with Daikin Airconditioning India, Schneider Electric IT Business India, Kirloskar Chillers, and Blue Star, among other companies. KRN Heat Exchanger reported a profit of Rs 39 crore and revenues of Rs 308 crore for the fiscal year ending in March 2024 on the financial side
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