Shares of KRN Heat Exchanger and Refrigeration Limited climbed sharply on 2 June following its fundraising announcement. The stock jumped by 4.05% to touch an intraday high of Rs 1,094.70 on the National Stock Exchange (NSE) during early morning market hours. Investors reacted positively to the news.

The capital was raised through a process known as a Qualified Institutional Placement. 

This method allows listed businesses to sell shares directly to large institutional buyers. An exchange filing confirmed that the committee approved the allotment of 33,01,886 fresh shares. 

The issue price was set at Rs 1,060 per share. This represents a minor discount of 4.85% to the initial regulatory floor price of Rs 1,114.05 per share. Global funds bought large stakes.

Prominent institutional allottees receiving over 5% of the total offer included the Abu Dhabi Investment Authority along with multiple schemes managed by WhiteOak Capital and Bank of India Mutual Fund. 

This equity expansion scales up the firm’s total paid-up share capital to Rs 65.46 crore from the previous base of Rs 62.16 crore. 

Management intends to use these newly acquired funds primarily to expand its specialised manufacturing facilities located at Neemrana and to satisfy rising working capital demands.

This capital infusion follows strong operational growth recorded by the manufacturer during its latest financial updates. The QIP attracted participation from several institutional investors. 

The industrial equipment firm recently reported a stellar 54% yearly revenue jump to Rs 202 crore for the fourth quarter of the financial year 2026, while its net profits reached Rs 16.87 crore. 

In another key management transition designed to drive future growth targets, the company appointed Pawan Nawal as its new chief financial officer on 15 May.

Trading activity remained active as buying progressed into the afternoon session. At 12:45 pm, KRN Heat Exchanger traded at Rs 1,079.00 on the NSE, up 2.57% from its previous close. It’s trading higher today.

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