Jain Resource Recycling has executed a loan conversion agreement to acquire additional equity in its UAE-based subsidiary, Jain Ikon Global Ventures FZC. The deal increases the company’s stake from 70% to 99.74%.

The Borrowing and Investment Committee approved the transaction on August 25, 2026, pursuant to Regulation 30 of the SEBI LODR Regulations. The agreement was formally executed on the same date.

Transaction Details

The company converted an outstanding unsecured working capital loan of AED 1.7064 million (approximately ₹44.50 crore) into 11,376 fully paid-up equity shares of Jain Ikon. The shares were allotted at a price of AED 1,500 each, which is also their face value. No fresh cash consideration was payable.

The original loan facility was sanctioned on May 28, 2024, with a total grant amount of USD 10 million. As of August 24, 2026, the outstanding balance stood at AED 1.7064 million. Upon allotment, the loan stands extinguished in full.

Strategic Rationale

Jain Resource Recycling stated that the consolidation aims to align its shareholding with the quantum of funding extended. The company noted that Jain Ikon has ceased operations and holds a negative net worth. The move is intended to facilitate the subsequent divestment of the entire investment in the subsidiary, which operates in gold and silver refining and chemical purification.

What the Numbers Show

A sharp divergence exists between Jain Ikon’s recent turnover figures. The subsidiary reported a turnover of AED 30.52 crore in FY24-25, which fell drastically to just AED 36,178 in FY25-26. This near-total collapse in revenue coincides with the parent company’s decision to convert debt into equity, potentially signaling a restructuring or wind-down phase ahead of the planned divestment.

Jain Resource Recycling appointed two new independent directors to its board during a meeting held on August 22, 2026. The appointments fill casual vacancies created by recent resignations and are subject to shareholder approval.

Ms. Kajal Mayur Saiya was appointed as an Independent Woman Director to replace Ms. Revathi Raghunathan, who resigned on August 19, 2026, citing personal reasons. Mr. Prakash Kumar Behra was appointed as an Independent Director to replace Mr. Kandaswamy Paramasivan, who resigned on August 3, 2026.

Both new directors hold office until March 18, 2028, covering the unexpired terms of their predecessors. The Board also reconstituted the Audit Committee and the Nomination and Remuneration Committee to reflect these changes.

Key Appointments

Profile of New Directors

Ms. Sajal Mayur Saiya is a practicing Company Secretary with over 14 years of experience in corporate laws and governance. She advises companies on regulatory compliance, restructuring, and statutory matters under the Companies Act, 2013.

Mr. Prakash Kumar Behra is a retired Principal Commissioner of the Indian Revenue Service (Customs & GST). He brings over 30 years of leadership experience in customs, tax administration, and trade facilitation, having headed commissionerates in Chennai, Pune, and Bhubaneswar.

Committee Reconstitution

The Audit Committee composition changed with effect from August 22, 2026. Mr. Rajendra Kumar Prasan now serves as Chairman, replacing Ms. Raghunathan. Mr. Mayank Pareek and Ms. Saiya serve as members.

The Nomination and Remuneration Committee also saw changes. Mr. Jayaramakrishnan Kannan became Chairman, while Mr. Kamlesh Jain and Mr. Behra serve as members. These adjustments ensure compliance with SEBI Listing Regulations regarding committee independence and composition.