KRN Heat Exchanger & Refrigeration Ltd., after its stellar Dalal Street debut, plans to start production at its Neemrana unit by early next year, according to Chairman and Managing Director Santosh Kumar Yadav.
The company will invest Rs 240 crore from its initial public offering's proceeds in its wholly-owned subsidiary to set up the new manufacturing facility, he told NDTV Profit in an interview. “We will invest Rs 240 crore in our new wholly-owned subsidiary, KRN HVAC Products Pvt. This new manufacturing facility is under construction in Neemrana and will be in production by early next year, around April 2025,” he said.
The rest of the funds will be used for general corporate purposes at the company's existing and new units, Yadav said.
On Thursday, KRN Heat Exchanger shares were listed on the NSE with a 118% premium. The stock made its market debut at Rs 480, compared to an offer issue price of Rs 220 per share.
With the enhanced capacity, the company will be able to cater to international demand, said Ashok Holani, director at Holani Consultants Pvt., market maker of KRN Heat Exchanger IPO.
“The company is already selling many products in the market and is dealing with most brands, and they are also regularly exporting products. With the enhanced capacity that will be generated from the IPO proceeds, KRN Heat Exchanger will be able to cater to international demand as well,” he said.
KRN Heat Exchanger manufactures all sorts of heat exchangers, generally for commercial air conditioning. Some of its clients include Daikin Air Conditioning India Pvt., Schneider Electric IT Business India Pvt., Kirloskar Chillers Pvt., Blue Star Ltd., and Climaveneta Climate Technologies Pvt.
Shares of KRN Heat Exchangers gained nearly 7% in intraday to touch a high of Rs 513.5 apiece on the NSE on Thursday. The stock closed 0.25% lower at Rs 478.79 per share, against the 2.12% losses in the benchmark Nifty 50.
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