NEW DELHI: The initial public offering (IPO) of KRN Heat Exchanger and Refrigeration Ltd received a strong response on the second day of the share sale, with the issue being subscribed 58.14 times on Thursday.
The IPO received bids for 63,91,84,780 shares against the total offer of 1,09,93,000 shares, according to data from the National Stock Exchange.
The non-institutional investors’ category is subscibed 135.82 times as it witnessed the highest demand while Retail Individual Investors (RIIs) category was subscribed 55.50 times.Meanwhile, the Qualified Institutional Buyers (QIBs) category was subscribed 3.16 times.
The Rs 342-crore IPO, with a price band of Rs 209-220 per share, consists of a fresh issue of 1,55,43,000 equity shares. The company plans to utilize Rs 242.5 crore for investment in its wholly-owned subsidiary, KRN HVAC Products, to set up a new manufacturing facility in Neemrana, Alwar, Rajasthan. The remaining funds will be used for general corporate purposes.
The IPO was fully subscribed within minutes of opening on the first day and closed with a subscription of 23.73 times. Prior to the public offering, the company had raised Rs 100 crore from anchor investors on Tuesday.
KRN Heat Exchanger and Refrigeration Ltd, based in Rajasthan, specializes in the production of fin and tube-type heat exchangers for the heat ventilation air conditioning and refrigeration industry. The company’s entire manufacturing operations are conducted at its consolidated facility, which comprises two industrial plots located in the RIICO Industrial Area, Neemrana, Rajasthan.
Holani Consultants is acting as the sole book-running lead manager for the company’s public issue.