 "KRN Heat to float initial share sale in Sep, collects Rs 9.54 cr in pre-IPO")
KRN Heat Exchanger and Refrigeration Ltd is likely to come out with its initial share sale next month, and funds will be used for expansion plans, market sources said on Sunday.
On Saturday, the company announced raising Rs 9.54 crore by a pre-IPO (initial public offering) placement round.
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 undertaken at its consolidated manufacturing facility comprising two industrial plots located in the RIICO Industrial Area, Neemrana, Rajasthan.
KRN Heat Exchanger's initial paper was filed in January 2024, comprising entirely a fresh issue of 1.93 crore equity shares with no OFS component.
Later, the company filed the papers in late March with a revised issue size.
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Going by the draft papers filed in March, the company's proposed IPO involved a fresh issue of size of 1.6 crore equity shares.
Market sources told PTI that the company is expected to float its IPO in September.
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 Private Ltd, Schnieder Electric IT Business India Private Ltd, Kirloskar Chillers Private Ltd, Blue Star Ltd and Climaventa Climate Technologies Private Ltd.
In a public announcement on Saturday, KRN Heat Exchanger and Refrigeration has undertaken pre-IPO placement of 4.77 lakh equity shares at Rs 200 apiece, aggregating the transaction size to Rs 9.54 crore.
Most of these funds have been collected by allocating shares to individual investors.
This has been undertaken following the approval by the board and shareholders in their respective meetings on August 3 and August 6.
Holani Consultants is the sole book-running lead manager to the company's maiden public issue.