KRN Heat Exchanger and Refrigeration to float IPO on Sep 25

New Delhi: KRN Heat Exchanger and Refrigeration Ltd is set to launch its Initial Public Offering (IPO) on September 25 with the proceeds aimed at driving the company's expansion plans.

The initial share sale will conclude on September 27 and the bidding for anchor investors will open for a day on September 24, according to the Red Herring Prospectus (RHP).

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.

KRN Heat Exchanger's proposed IPO involves a fresh issue of size of 1.55 crore equity shares with no Offer For Sale (OFS) component, as per the RHP.

Funds will be used for investment in wholly-owned subsidiary KRN HVAC Products for setting up a new manufacturing facility at Neemrana, Alwar, in Rajasthan.

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