KRN Heat Exchanger and Refrigeration Ltd, a key player in the HVAC and refrigeration sector, is launching its Initial Public Offering (IPO) on September 25, with the goal of raising funds for expansion. The IPO, closing on September 27, involves the issuance of 1.55 crore fresh equity shares. Proceeds will be used to develop a new manufacturing facility in Rajasthan and bolster its wholly-owned subsidiary, KRN HVAC Products. The company enjoys strong relationships with industry giants like Daikin and Blue Star, and has already raised Rs 9.54 crore through a pre-IPO placement round.

IPO Launch Dates and Key Details

KRN Heat Exchanger and Refrigeration Ltd will launch its IPO on September 25, with the offering closing on September 27. Prior to this, a one-day bidding window for anchor investors will open on September 24, according to the Red Herring Prospectus (RHP).

The Rajasthan-based company, which specializes in manufacturing fin and tube-type heat exchangers for the HVAC and refrigeration sectors, aims to raise funds to drive significant expansion efforts.

IPO Structure and Fund Allocation

KRN Heat Exchanger's IPO will include a fresh issue of 1.55 crore equity shares. Notably, there is no Offer for Sale (OFS) component in this offering, meaning that no existing shareholders will be selling their stake. Instead, all proceeds will go towards funding the company’s growth plans.

Funds raised from the IPO will be directed towards an investment in KRN HVAC Products, a wholly-owned subsidiary. The capital will be used to establish a new manufacturing facility in Neemrana, Alwar, Rajasthan, strengthening the company’s operational footprint.

Strategic Partnerships and Industry Relationships

KRN Heat Exchanger and Refrigeration Ltd has built strong, long-term partnerships with leading industry players, including Daikin Air Conditioning India Pvt Ltd, Schneider Electric IT Business India Pvt Ltd, Kirloskar Chillers Pvt Ltd, Blue Star Ltd, and Climaventa Climate Technologies Pvt Ltd. These partnerships underscore the company’s pivotal role in the HVAC and refrigeration market.

Manufacturing Capabilities

KRN’s manufacturing operations are consolidated at its Neemrana facility, which spans two industrial plots in the RIICO Industrial Area. This facility plays a central role in the production of fin and tube-type heat exchangers, which are critical components for air conditioning and refrigeration systems. The upcoming manufacturing expansion will further solidify KRN’s position in the market.

Pre-IPO Fundraising

In August 2024, KRN successfully raised Rs 9.54 crore through a pre-IPO placement round. The company issued 4.77 lakh equity shares at Rs 200 apiece, with the majority of these shares allocated to a range of individual investors. This pre-IPO fundraising has provided KRN with initial capital for its expansion, allowing it to proceed with its IPO plans more confidently.

IPO Management

Holani Consultants has been appointed as the sole book-running lead manager for KRN Heat Exchanger and Refrigeration Ltd’s maiden public issue. This appointment highlights the company’s meticulous planning and execution as it enters the public market, ensuring that the IPO process is managed efficiently and effectively.

As KRN steps into this next phase of growth, the funds raised will be pivotal for scaling its operations, particularly through its new manufacturing facility, further enhancing its competitive position in the HVAC and refrigeration industry.