KRN Heat Exchanger and Refrigeration Limited has released its Monitoring Agency Report for the quarter ended March 31, 2026. The report details the utilization of proceeds from its Initial Public Offer (IPO), which totaled Rs 34,194.60 lakhs. As of the end of the quarter, the company has successfully utilized Rs 33,847.32 lakhs toward project-related capital expenditure and issue expenses, maintaining a transparent account of its deployment strategy and ongoing manufacturing facility development.
IPO Proceeds Deployment Summary
The company has made significant progress in deploying funds from its IPO. Out of the total net proceeds, Rs 23,304.05 lakhs have been directed toward the establishment of a new manufacturing facility at Neemrana, Alwar, Rajasthan, via its wholly owned subsidiary, KRN HVAC Products Private Limited. As of the end of the fourth quarter of the fiscal year, this investment has covered land and site development, civil and structural works, and the procurement of plant and machinery.
Utilization Status and Financials
At the close of the quarter ending March 31, 2026, the total amount utilized stands at Rs 33,847.32 lakhs. Of this, Rs 3,007.27 lakhs has been accounted for as issue-related expenses, covering brokerage and selling commissions. The company reported a remaining unutilized balance of Rs 347.28 lakhs, which is currently held in liquid instruments, including a fixed deposit with HDFC Bank and a current account held by the subsidiary.
Project Implementation Update
While there is a slight delay in the implementation schedule relative to the initial prospectus projections, the company has clarified that this is primarily due to imported machinery being in transit. Management confirmed that the project remains on track, and the remaining funds are earmarked for completion in the subsequent fiscal period. The company maintains that all statutory and government approvals required for the project, including factory licenses and pollution department clearances, have been successfully obtained.
Source: BSE
