KRN Heat Exchanger and Refrigeration Approves Investment in Subsidiary to Fund Working Capital Needs
KRN Heat Exchanger and Refrigeration Limited has approved a significant investment into its wholly owned subsidiary, KRN HVAC Products Private Limited (KHPL). The transaction aims to fund KHPL's working capital requirements through a targeted injection of capital.The decision was made by the Banking and Finance Committee (BFC) of the company during a meeting held on June 09, 2026.
As part of this investment, KRN Heat Exchanger and Refrigeration Limited will invest ₹235,25,75,100 into KHPL. This funding involves the acquisition of 78,41,917 equity shares of KHPL. The shares were acquired at an issue price of ₹300 per equity share. These shares comprise a face value of ₹10 per equity share and a securities premium of ₹290 per equity share.
This investment is linked to the Use of Proceeds as detailed in the Placement Document dated June 01, 2026, related to a Qualified Institutions Placement (QIP) for the parent company. The investment is recognized as a related party transaction and is stated to be executed on an Arm's length basis.
KHPL is a wholly owned subsidiary of KRN Heat Exchanger and Refrigeration Limited and operates in the manufacturing sector, specializing in Heat Exchangers and other HVAC Products. The company was incorporated on 07.04.2023. The investment will be completed within one month.
The financial performance metrics for KHPL across recent fiscal years show a trajectory of growth. Key operational details regarding the subsidiary are summarized below:
| Particulars | Details |
|---|---|
| Target Entity Name | KRN HVAC Products Private Limited (KHPL) |
| Industry | Manufacturing |
| Nature of Relationship | Wholly Owned Subsidiary |
| Investment Purpose | Funding Working Capital Requirements |
| Acquisition Price Per Share | ₹300 |
| FY 2025-26 Turnover | Rs. 218.85 Crore |
| FY 2024-25 Turnover | Rs. 15.51 Crore |
| FY 2023-24 Turnover | Rs. 0.23 Crore |
KRN Stock Price Movement
Today, KRN Heat Exchanger and Refrigeration Limited shares surged by 4.99% in post-market trading, settling at ₹1232 today. The stock saw a total volume of 116,226 shares traded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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