KRN Heat Exchanger and Refrigeration Limited has approved an investment of ₹235.26 crore in its wholly owned subsidiary, KRN HVAC Products Private Limited (KHPL), to fund the latter's working capital requirements. The Banking and Finance Committee (BFC) of the Board of Directors sanctioned the investment on June 09, 2026. The funds will be deployed through the subscription of 78,41,917 equity shares at an issue price of ₹300 per share, comprising a face value of ₹10 and a securities premium of ₹290 per share.

Investment Structure and Transaction Details

The investment is part of the use of proceeds specified in the Placement Document dated June 01, 2026, relating to a Qualified Institutions Placement (QIP). The transaction, classified as a related party transaction, was conducted at arm's length. KHPL will continue to remain a wholly owned subsidiary of the company following the investment, with no change in the shareholding percentage. The indicative time period for the completion of the acquisition is one month.

Key details of the investment are summarised below:

About KRN HVAC Products Private Limited

KHPL, incorporated on April 07, 2023, is engaged in the manufacturing of heat exchangers and other HVAC products. The subsidiary has demonstrated significant growth in its operations over the past three financial years. For the financial year 2025-26, the entity reported a revenue of ₹218.85 crore, a sharp increase from previous years.

The financial performance of KRN HVAC Products Private Limited over the last three years is detailed below:

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information has been submitted to BSE Limited and the National Stock Exchange of India Limited and is available on the company's website.

Promoters of krn heat exchanger and refrigeration held 4,39,99,980 equity shares, representing 70.79% of the company's total equity, as on March 31, 2026. Santosh Kumar Yadav, a promoter of the company, confirmed that the promoter group did not create any encumbrances on these shares, directly or indirectly, at any point during the financial year ended March 31, 2026. The disclosure was made to BSE Limited and the National Stock Exchange of India Limited in compliance with regulatory requirements.

The declaration was submitted pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires promoters to disclose the status of their holdings and any encumbrances thereon. The filing confirmed that the shareholding remained unencumbered throughout FY26, providing clarity to shareholders regarding the promoters' stake.

The disclosure identified 18 entities comprising the promoter and promoter group, including Persons Acting in Concert (PAC). The list includes three individual promoters and fifteen members of the promoter group, which consists of individuals and KRNCOILS Private Limited. The complete list of entities was provided as an annexure to the filing submitted on April 07, 2026.

Promoter and Promoter Group Details

The letter was signed by Santosh Kumar Yadav on behalf of the Promoter and Promoter Group. A copy of the disclosure was also forwarded to the Audit Committee of KRN Heat Exchanger and Refrigeration Limited for their records.