KRN Heat Exchanger Board Approves Loan Modifications and Employee Stock Option Plan 2026
KRN Heat Exchanger and Refrigeration Limited's board meeting on January 12, 2026, resulted in three major approvals: modification of a ₹100 crore loan agreement with subsidiary KRN HVAC Products Private Limited into a convertible facility, sanction of a new ₹10 crore unsecured loan to Thermotech Research Laboratory Private Limited at 12% interest, and introduction of Employee Stock Option Plan 2026 covering 6 lakh equity shares subject to shareholder approval.
*this image is generated using AI for illustrative purposes only.
KRN Heat Exchanger and Refrigeration Limited announced key strategic decisions following its board meeting held on January 12, 2026. The company approved significant loan modifications and introduced an employee stock option plan, demonstrating its commitment to subsidiary growth and employee retention.
Loan Agreement Modifications
The board approved substantial modifications to the existing loan agreement with KRN HVAC Products Private Limited, a wholly-owned subsidiary. The key changes involve converting the unsecured loan into a convertible facility, providing the lender with discretionary conversion rights.
| Parameter: | Details |
|---|---|
| Original Agreement Date: | April 15, 2023 |
| Modification Date: | January 12, 2026 |
| Loan Amount: | ₹100.00 crores |
| Outstanding Amount: | ₹99.94 crores |
| Nature: | Unsecured convertible loan |
| Security: | Nil |
The modification grants KRN Heat Exchanger the right to convert the outstanding loan amount, along with accrued interest, into fully paid-up equity shares of KRN HVAC at its sole discretion. The conversion will be based on valuation reports obtained by the borrower when conversion requests are made.
New Loan Facility Approved
The board sanctioned a fresh loan agreement with Thermotech Research Laboratory Private Limited, another wholly-owned subsidiary, to support its working capital requirements.
| Loan Details: | Specifications |
|---|---|
| Borrower: | Thermotech Research Laboratory Private Limited |
| Loan Amount: | ₹10.00 crores |
| Interest Rate: | 12.00% per annum |
| Tenure: | Maximum 12 months (renewable) |
| Disbursement: | Multiple tranches |
| Security: | Unsecured |
Employee Stock Option Plan 2026
The board approved the comprehensive KRN Employee Stock Option Plan 2026, subject to shareholder approval at the upcoming general meeting. The plan aims to reward employee performance and attract talented professionals to the organization.
| ESOP Parameters: | Details |
|---|---|
| Total Options: | 6,00,000 equity shares |
| Face Value: | ₹10.00 per share |
| Exercise Price: | Minimum 50% of closing price on grant date |
| Vesting Period: | 1-5 years from grant date |
| Exercise Window: | 3 years from vesting date |
The plan complies with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The Nomination and Remuneration Committee will determine eligible employees and grant options in tranches. The exercise price may be adjusted for corporate actions such as rights issues, bonus issues, or stock splits.
Related Party Transactions
Both loan agreements constitute related party transactions conducted at arm's length basis. KRN HVAC Products Private Limited and Thermotech Research Laboratory Private Limited are wholly-owned subsidiaries, making them part of the promoter group companies. The transactions require appropriate regulatory disclosures under SEBI listing regulations.
The board meeting commenced at 3:35 PM and concluded at 4:00 PM on January 12, 2026, with all resolutions receiving necessary approvals.
Historical Stock Returns for KRN Heat Exchanger and Refrigeration
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.59% | -19.91% | -22.82% | -7.91% | +32.68% | +131.86% |
16
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
