Organic Recycling Systems has secured shareholder approval for the issuance of bonus equity shares by capitalisation of reserves. The company’s Extra-ordinary General Meeting (EGM), held on August 3, 2026, passed the ordinary resolution with the requisite majority, marking a key step in enhancing shareholder equity without additional cash outlay.

The meeting was conducted through Video Conferencing (VC) / Other Audio-Visual Means (OAVM) in compliance with the Companies Act, 2013, and various Ministry of Corporate Affairs (MCA) Circulars issued between 2020 and 2025. It also adhered to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Sarang Bhand, Managing Director, occupied the chair and presided over the proceedings from Mumbai, as Chairman Rakesh Mehra was unable to attend due to exigencies.

Meeting Proceedings and Quorum

The EGM commenced at 11:30 a.m. with 21 members present via VC, satisfying the quorum requirements under Section 103 of the Companies Act, 2013. Physical attendance was dispensed with per MCA guidelines, and proxy appointments were not available. Independent Directors Rakesh Mehra and Amit Karia were absent. The Statutory Auditors, Secretarial Auditors, and Scrutinizer were present. The deemed venue of the meeting was the company’s registered office in Navi Mumbai, as per Secretarial Standard on General Meetings (SS-II).

Voting Mechanism and Results

Shareholders exercised their voting rights through remote e-voting and an ‘Insta-Poll’ facility during the meeting. Remote e-voting was open from July 30, 2026, at 9:00 a.m. IST until August 2, 2026, at 5:00 p.m. IST, for members holding shares as of the cut-off date, July 27, 2026. Those who voted remotely were ineligible to vote again during the live session. The ‘Insta-Poll’ facility remained open for 15 minutes after the meeting concluded at 12:05 p.m. No questions were raised by members during the question-and-answer session.

The single resolution on the agenda — approval of the issue of bonus equity shares by capitalisation of reserves — was passed with the requisite majority. Mr. Anish Gupta, Partner at VKMG & Associates LLP, served as the scrutinizer for the e-voting process. Technical support for any voting issues was provided through National Securities Depository Limited (NSDL).

What This Means for Shareholders

The approval of the bonus issue allows Organic Recycling Systems to capitalize its reserves, thereby increasing the number of shares held by existing investors proportionately. This action enhances liquidity and marketability of the shares while reflecting the company’s retained earnings strength. Shareholders will receive further intimation regarding the specific allotment details and timelines separately.

Organic Recycling Systems has scheduled an Extra-Ordinary General Meeting (EGM) on August 3, 2026, to seek shareholder approval for a bonus issue at a ratio of 1:2. The meeting will be held through Video Conference at 11:30 a.m. (IST). The corporate action aims to capitalize reserves to reward shareholders and enhance liquidity, subject to regulatory approvals. The company has intimated the exchange regarding the publication of advertisements for this EGM in the Financial Express and Navshakti newspapers on July 11, 2026.

Bonus Issue Details

The Board of Directors approved the issuance of 51,99,637 new fully paid-up equity shares of ₹10 each. The allotment will be funded from the securities premium account and the capital redemption reserve account. The total amount capitalized will not exceed ₹5,19,96,370. The following table summarizes the key parameters of the issue:

Capital Structure Impact

The bonus issue will alter the company's paid-up equity share capital. Pre-bonus capital stands at ₹10,39,92,750, comprising 1,03,99,275 shares of ₹10 each. Post-issue, the capital will increase to ₹15,59,89,120, consisting of 1,55,98,912 shares of ₹10 each. The actual number of shares issued will be determined based on the paid-up equity share capital as on the record date.

EGM and Voting Details

The company has fixed July 27, 2026, as the cut-off date to determine member eligibility for voting and attending the EGM. Remote e-voting will be available from 9:00 a.m. on July 30, 2026, until 5:00 p.m. on August 2, 2026. Members can also vote during the meeting via the e-voting system. The scrutinizer for the process is Mr. Anish Gupta or Mr. Manish Rajnarayan Gupta of M/s. VKMG & Associates LLP. The bonus shares are expected to be credited within two months from the date of the Board meeting, pending approval.