Organic Recycling Systems will hold its 18th Annual General Meeting on September 30, 2026, at 11:30 am via video conferencing to seek shareholder approval for a ₹16.10 crore preferential allotment. The issuance involves up to 10 lakh equity shares priced at ₹161 per share to promoter Sarang Bhand.

The Board of Directors approved the transaction in its meeting on September 2, 2026. The company previously disclosed the proposal under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The AGM notice also includes the re-appointment of Director Yashas Bhand, who retires by rotation.

Deal Details and Pricing

The preferential issue comprises fully paid-up equity shares with a face value of ₹10 each. The issue price of ₹161 includes a premium of ₹151 per share. This price exceeds the minimum floor price of ₹160.01 determined by registered valuer Manish Motilala Jaju in accordance with Regulation 164(1), 166, and 166(A) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The relevant date for determining the floor price is August 31, 2026. The 90-day volume-weighted average price (VWAP) preceding this date was ₹160.01, while the 10-day VWAP was ₹158.26. Since the allotment exceeds 5% of the post-issue fully diluted share capital, an independent valuation report was obtained.

Utilization of Proceeds

The company plans to deploy the issue proceeds within 24 months of receipt. The primary objective is expansion into an integrated Build-Own-Operate (BOO) bioenergy platform.

The bioenergy expansion covers project development, EPC expenditure, land purchase, and equipment commissioning. The company intends to participate in bidding processes for bioenergy projects with government entities. Unutilized amounts earmarked for general corporate purposes may be redirected to the BOO platform. Pending utilization, funds may be deployed in money market instruments or bank deposits.

Shareholding Impact

Mr. Sarang Bhand, Managing Director and promoter, currently holds 23,50,509 equity shares, representing 15.07% of the paid-up equity share capital. Upon full subscription, his holding will increase to 33,50,509 shares, or 20.19% of the post-issue capital. There will be no change in the composition of the Board or control of the company.

Regulatory and Voting Details

The allotment is subject to regulatory approvals and shareholder consent under Chapter V of the SEBI ICDR Regulations. Members can cast votes via remote e-voting from September 26, 2026, at 9:00 am to September 29, 2026, at 5:00 pm through the NSDL platform. The cut-off date for voting rights is September 23, 2026. M/s. VKMG & Associates LLP has been appointed as the scrutinizer for the voting process.

Organic Recycling Systems has approved the allotment of 51,99,630 fully paid-up bonus equity shares in a ratio of 1:2. The Board’s Bonus Allotment Committee finalized the decision on August 21, 2026, with a record date of August 20, 2026.

The company issued this intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The allotment applies to shareholders registered in the Register of Members or Register of Beneficial Owners as on the record date.

Capital Structure Impact

Consequent to the bonus issue, the paid-up equity share capital increases from ₹10,39,92,750 to ₹15,59,89,050. The total number of equity shares rises from 1,03,99,275 to 1,55,98,905, with each share carrying a face value of ₹10.

Allotment Mechanics

Fractional shares arising from the calculation have been ignored, and no allotment has been made for such portions. The new bonus shares rank pari-passu in all respects with existing equity shares, carrying identical rights.

For members holding physical shares, the bonus equity shares will be transferred to a Suspense Escrow Demat Account within statutory time limits. No letter of allotment will be issued to these allottees, and voting rights for shares held in the Suspense Escrow Demat Account remain frozen until dematerialization.