KRN Heat Exchanger IPO fully subscribed within minutes of opening for share sale

The initial public offer of KRN Heat Exchanger and Refrigeration Ltd got fully subscribed within minutes of opening for share sale on Wednesday. The initial share sale received bids for 3,40,48,105 shares against 1,09,93,000 shares on offer, translating into 3.10 times subscription, as per data available with the NSE till 10:39 hours.

Non-Institutional Investors subscribed 6.29 times the offer, while the Retail Individual Investors (RIIs) portion received 3.46 times subscription.

KRN Heat Exchanger and Refrigeration Ltd on Tuesday said it has raised Rs 100 crore from anchor investors.

The Rs 342-crore IPO is available for public subscription during September 25-27 in the price range of Rs 209-220 per share.

KRN Heat Exchanger’s IPO involves a fresh issue of 1,55,43,000 equity shares valued at Rs 342 crore at the upper-end of the price band.

Funds to the tune of Rs 242.5 crore will be used for investment in wholly-owned subsidiary KRN HVAC Products for setting up a new manufacturing facility at Neemrana, Alwar, in Rajasthan and the remaining funds will be used for general corporate purposes. 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.

Holani Consultants is the sole book-running lead manager to the company’s public issue.