KRN Heat Exchanger and Refrigeration Limited Initial Public Offer of up to ₹ 342 crore to open on Wednesday, September 25, 2024

• Price Band fixed at ₹ 209 to ₹ 220 per Equity Share of face value of ₹10 each

• The issue size at lower price band is ₹324.85 crore and upper price band is ₹341.95 crore

• Bid / Issue will open on Wednesday, September 25, 2024 and close on Friday, September 27, 2024. The Anchor Investor Bidding Data Shall be Tuesday,September 24, 2024

• Bids can be made for a minimum of 65 Equity Shares and in multiples of 65 Equity Shares thereafter

• RHP Link: https://www.holaniconsultants.co.in/download/ipo/KRN-RHP.pdf

Bhubaneswar: KRN Heat Exchanger and Refrigeration Limited (“KRN Heat Exchanger” or the “Company”), shall open its Bid / Issue in relation to its initial public offer of Equity Shares on Wednesday, September 25, 2024.

The total Issue size of Equity Shares (face value  ₹ 10 each) comprises of fresh issue of up to  1,55,43,000 Equity Shares (The “Fresh Issue”). At upper price band the total issue size is ₹341.95 crore and at lower price band is ₹324.85 crore. (“Total Issue Size”)

The Anchor Investor Bidding Date shall be Tuesday, September 24, 2024.  The Bid/Issue will open on Wednesday, September 25, 2024 and close on Friday, September 27, 2024. Bids can be made for a minimum of 65 Equity Shares and in multiples of 65 Equity Shares thereafter.

 (“Bid Details”)

The Price Band of the Issue has been fixed at₹ 209 to ₹ 220 per Equity Share. (“Price Band”)

The Company proposes to utilise net proceeds from fresh issue of Equity Shares towards (a) investment in our wholly owned subsidiary, KRN HVAC Products Private Limited in the form of equity for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan (“Proposed Project”) estimated to₹ 24,246.10 Lakh [₹ 242.46 crore] and General corporate purposes. (“Object of Issue”)

This Equity Shares are being issued through the Red Herring Prospectus (“the RHP”) of the Company dated September 14, 2024 filed with Registrar of Companies, Jaipur, Rajasthan  and are proposed to be listed on the BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”).

The Issue is being made through the Book Building Process, in terms of Rule 19(2)(b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (SEBI ICDR Regulations) and in compliance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50% of the Net Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs and such portion, the “QIB Portion”), provided that our Company in consultation with the BRLM, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (“Anchor Investor Portion”), out of which one-third shall be reserved for domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors (“Anchor Investor Allocation Price”), in accordance with the SEBI ICDR Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion (excluding the Anchor Investor Portion) (“Net QIB Portion”).

Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs.

Further, not less than 15% of the Net Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Issue Price. The Equity Shares available for allocation to Non-Institutional Bidders under the Non-Institutional Portion, shall be subject to the following: (i) one-third of the portion available to Non-Institutional Bidders shall be reserved for applicants with an application size of more than ₹ 2.00 Lakhs and up to ₹ 10.00 Lakhs, and (ii) two-third of the portion available to Non-Institutional Bidders shall be reserved for applicants with an application size of more than ₹ 10.00 Lakhs, provided that the unsubscribed portion in either of the aforementioned sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Bidders. All potential Bidders (except Anchor Investors) are mandatorily required to utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA accounts and UPI ID in case of UPI Bidders using the UPI Mechanism, as applicable, pursuant to which their corresponding Bid Amount will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or by the Sponsor Banks under the UPI Mechanism, as the case may be, to the extent of the respective Bid Amounts. Anchor Investors are not permitted to participate in the Issue through the ASBA Process. For details, see “Issue Procedure” on page 410.

Holani Consultants Private Limited are the sole Book Running Lead Managers to the issue.

All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.