KRN Heat Exchanger IPO: Rs 342 Cr Issue Opens Sep 25

New Delhi, Sep 20 (PTI) KRN Heat Exchanger and Refrigeration Ltd on Friday announced a price band of Rs 209 to Rs 220 apiece for its Rs 342-crore initial public offering (IPO) with the proceeds aimed at driving the company's expansion plans.

The initial share-sale will open for public subscription on September 25 and conclude on September 27 and the bidding for anchor investors will open for a day on September 24, the company announced.

KRN Heat Exchanger's proposed IPO involves fresh 1,55,43,000 equity shares valued Rs 342 crore at the upper end of the price band.

Funds to the tune of Rs 242.5 crore will be used for investment in wholly-owned subsidiary KRNC Products for setting up a new manufacturing facility at Neemrana, Alwar in Rajasthan and the remaining funds will be used for general corporate purposes.

The Rajasthan-based company manufactures fin and tube type heat exchangers for the heat ventilation air-conditioning and refrigeration industry.

The company's entire manufacturing operations are carried out at its consolidated manufacturing facility comprising two industrial plots situated in the RIICO Industrial Area, Neemrana, Rajasthan.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for retail investors.

Investors can bid for a minimum of 65 equity shares and in multiples of 65 equity shares thereafter.

The company has long standing relations with Daikin Air conditioning India Private Ltd, Schnieder Electric IT Business India Private Ltd, Kirloskar Chillers Private Ltd, Blue Star Ltd and Climaventa Climate Technologies Private Ltd.

Last month, KRN Heat Exchanger and Refrigeration announced raising Rs 9.54 crore by way of pre-IPO placement round.

The company undertook a pre-IPO placement of 4.77 lakh equity shares at Rs 200 apiece. Most of these funds were collected by allocating shares to a slew of individual investors.

Holani Consultants is the sole book-running lead manager to the company's maiden public issue.