KRN Heat Exchanger and Refrigeration IPO: Here’s everything you need to know from RHP about upcoming issue

The KRN Heat Exchanger and Refrigeration IPO will open for subscription on September 25, 2024, and will close on September 27, 2024. Bidding for anchor investors is scheduled for September 24, 2024. The company has not yet announced the price band for the issue.

According to the Red Herring Prospectus (RHP), the proposed IPO consists entirely of a fresh issuance of 1.55 crore equity shares, with no offer-for-sale (OFS) component included.

The funds raised will be allocated to KRN HVAC Products, the company's wholly-owned subsidiary, to establish a new manufacturing facility in Neemrana, Alwar, Rajasthan.

Recently, the company raised ₹9.54 crore through a pre-IPO placement of 4.77 lakh equity shares at a price of ₹200 each. As a result, the size of the fresh issue has been reduced by 4.77 lakh shares.

Holani Consultants serves as the exclusive book-running lead manager for the issue, while Bigshare Services is the registrar for the offer.

About the company

KRN Heat Exchanger, based in Rajasthan, specializes in manufacturing fin and tube type heat exchangers for the heating, ventilation, air conditioning, and refrigeration (HVAC&R) industry.

It has established long-term partnerships with Blue Star Ltd, Schneider Electric IT Business India Pvt Ltd, Daikin Air Conditioning India Pvt Ltd, Kirloskar Chillers Pvt Ltd, and Climaventa Climate Technologies Pvt Ltd.

The company has demonstrated strong financial performance in recent years, with profits rising by 20.9 per cent year-on-year to ₹39 crore for the fiscal year ending March 2024. Revenue for the same period increased by 24.6 per cent to ₹308.3 crore, up from ₹247.5 crore in the previous fiscal year.

The equity shares of KRN Heat Exchanger will be listed on both the BSE and NSE. Holani Consultants is serving as the sole book running lead manager for the IPO, while Bigshare Services is acting as the registrar for the offering.