KRN Heat Exchanger Sets IPO Price Band at Rs 209-220 for Rs 342-Crore Offering

KRN Heat Exchanger and Refrigeration Ltd announced a price band for its Rs 342-crore IPO. The IPO will open from September 25-27, with anchor bidding on September 24. Proceeds will fund expansion and corporate purposes. Funds will also support a new manufacturing facility at Neemrana, Rajasthan.

KRN Heat Exchanger and Refrigeration Ltd on Friday announced a price band of Rs 209 to Rs 220 per share for its Rs 342-crore initial public offering (IPO), aimed at propelling the company's expansion plans.

The IPO will be open for public subscription from September 25 to September 27, with a separate bidding day for anchor investors on September 24, the company confirmed.

KRN Heat Exchanger's IPO entails a fresh issuance of 1,55,43,000 equity shares worth Rs 342 crore at the top end of the price band. A significant Rs 242.5 crore is earmarked for investment in its subsidiary, KRN HVAC Products, for a new manufacturing facility in Neemrana, Rajasthan. Remaining funds will go towards general corporate uses.

The company, based in Rajasthan, specializes in manufacturing fin and tube type heat exchangers for the heat, ventilation, air-conditioning, and refrigeration sectors. Its manufacturing operations are concentrated at two industrial plots in the RIICO Industrial Area, Neemrana.

The IPO allotment will reserve 50% of shares for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. Minimum bids are set at 65 shares and in multiples thereof.

In August, KRN Heat Exchanger raised Rs 9.54 crore through a pre-IPO placement of 4.77 lakh equity shares at Rs 200 each, primarily to individual investors.

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

(With inputs from agencies.)