KRN Heat Exchanger and Refrigeration Limited announced the outcome of its Board Meeting held on January 12, 2026. The board approved modifications to a loan agreement dated April 15, 2023, with its wholly-owned subsidiary, KRN HVAC Products Private Limited. The existing unsecured loan to KRN HVAC, with an outstanding amount of ₹99.94 crore, will be modified to potentially convert into equity shares at the lender's discretion. The total loan amount is capped at ₹100 crore.

Additionally, the company approved the execution of a new loan agreement dated January 12, 2026, with another wholly-owned subsidiary, Thermotech Research Laboratory Private Limited (TRL). This unsecured loan will be up to ₹10 crore, provided in tranches, with an interest rate of 12% per annum and a maximum tenure of 12 months, renewable by mutual discussion. The loan is intended to meet TRL's working capital requirements, and the outstanding amount is currently NIL.

Furthermore, the Board approved the 'KRN Employee Stock Option Plan 2026' (ESOP Plan), subject to shareholder approval. This plan allows for the grant of up to 6,00,000 employee stock options, exercisable into an equal number of equity shares of face value ₹10 each. The exercise price will be determined by the Compensation Committee, not less than 50% of the closing share price on the grant date. The ESOP Plan complies with SEBI regulations, aims to reward and retain employees, and allows options to vest between one to five years from the grant date, with an exercise period of three years for vested options.