KRN Heat Exchanger and Refrigeration has successfully raised Rs 349.99 crore through a Qualified Institutional Placement (QIP) by allotting 3.3 million equity shares at Rs 1,060 per share. The issue, which opened on May 26 and closed on June 1, saw significant interest from institutional investors. The funds will support the company's expansion plans in various sectors, including HVAC and refrigeration.
According to the company's stock exchange filings, the QIP saw VQ Fastercap Fund emerge as the largest subscriber, acquiring 25.72% of the issue. WhiteOak Capital's managed funds collectively subscribed to 17.57% of the shares, followed by ValueQuest India Inflexion Fund at 14.57% and Ashoka WhiteOak India Opportunities Fund at 13.99%. The Abu Dhabi Investment Authority and Bank of India funds accounted for 7.15% and 7.14% of the issue, respectively. Subhkam Ventures I Pvt Ltd acquired 5.71% of the shares offered.
KRN Heat has a diversified presence across HVAC, data centres, industrial cooling, transportation applications, and refrigeration. The company recently entered the bus air-conditioning segment and is expanding exports to markets such as the UAE, the US, and Europe.
For FY26, KRN reported a 57% year-on-year increase in standalone total income to Rs 689.9 crore. The company's EBITDA rose 19% year-on-year to Rs 84.8 crore, while net profit grew 42% year-on-year to Rs 71.3 crore.
The QIP is part of KRN Heat's strategy to bolster its financial position and support its growth initiatives. The company had previously secured board approval to raise up to Rs 500 crore through the QIP route.
Background
KRN Heat's move to raise capital through a QIP comes amid its strategic expansion into new markets and segments. The company's recent financial performance indicates robust growth, which it aims to sustain through increased investment in its core and emerging business areas.
Looking ahead, KRN Heat is poised to leverage the funds raised to enhance its market presence and explore new opportunities in both domestic and international markets. Investors and stakeholders will be keenly watching the company's next moves in its expansion strategy.
