Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015-Monitoring Agency Report
KRN · price
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KRN Heat Exchanger has filed the Crisil Ratings Monitoring Agency Report on the use of its IPO proceeds, raised in September 2024 for Rs 341.95 crore gross (Rs 311.12 crore net). Of the net proceeds, Rs 236 crore was earmarked for investing in subsidiary KRN HVAC Products to set up a new manufacturing facility in Neemrana, Rajasthan, while Rs 75 crore was for general corporate purposes. As of March 31, 2025, the company has utilized about Rs 232 crore in total, leaving roughly Rs 110 crore unutilized. Only Rs 127 crore of the Rs 236 crore allocated to the new manufacturing facility has been deployed, with the rest parked in fixed deposits. The company has confirmed there is a delay in the project timeline, attributing it to the GRAP (Graded Response Action Plan) notification in Delhi-NCR by CAQM.
Shareholders should note that the company's main IPO-funded expansion project is running behind schedule due to regulatory air-quality restrictions in Delhi-NCR, and about Rs 110 crore remains uninvested. While the funds are safely parked in bank fixed deposits earning 4.75%-8.70%, the delayed deployment of IPO money signals slower capacity addition than originally promised, which may modestly weigh on near-term growth visibility.