Punjab-based HVAC component maker Koolking Industries has filed draft papers with SEBI for a ₹300 crore IPO. The offering includes a fresh issue to fund factory expansion and an offer-for-sale by promoters. Investors should note the company's focus on scaling manufacturing across three states.
Koolking Industries, a manufacturer of heating, ventilation, and air conditioning components, has officially filed its draft red herring prospectus with the market regulator SEBI. The company plans to raise ₹300 crore through this initial public offering to fuel its expansion efforts. The share sale will consist of a fresh equity issue alongside an offer-for-sale where existing promoters will offload 3.05 million shares.
Most of the funds from the fresh issue, specifically ₹138.4 crore, will be used to set up new manufacturing plants in Malerkotla, Punjab; Sricity, Andhra Pradesh; and Ghiloth, Rajasthan. This expansion is designed to help the company increase its production capacity in the residential and commercial HVAC segments. Additionally, the company has earmarked ₹14.5 crore for upgrading machinery and ₹60 crore for working capital requirements to support its growing operations. The company also noted it is considering a pre-IPO placement of up to ₹60 crore, which, if completed, would reduce the final size of the fresh issue.
Financially, the company has shown consistent growth. For the fiscal year ending March 2026, it reported a net profit of ₹33.2 crore, up from ₹27.1 crore in the previous year. Revenue also grew to ₹526.7 crore compared to ₹483.1 crore in the prior year. The firm currently operates five plants across India with a combined capacity of over 419 million units annually.
Investors should consider the nature of the HVAC component business, which is highly competitive and sensitive to fluctuations in raw material costs, such as copper, aluminum, and steel. As a component manufacturer, the company’s performance is closely linked to the demand for finished HVAC products from other brands. Any slowdown in the broader consumer appliance sector could impact order volumes or pricing power. Furthermore, the company faces competition from both large domestic players and established international brands operating in India. A key area to monitor will be how the company manages the execution of its new manufacturing units and whether it can maintain its profit margins while scaling operations.
Keynote Financial Services has been appointed to manage the IPO process. The next steps for the company will involve receiving observations from SEBI and finalizing the issue dates, pricing, and valuation details. Prospective investors should track the company’s ability to manage its working capital cycle and the timely commissioning of the new manufacturing facilities in the upcoming quarters.