Race Eco Chain Limited has announced the forfeiture of subscription amounts totaling ₹17,20,40,000 from convertible warrants after all warrant holders failed to exercise their conversion option within the regulatory timeframe. The development affects 19,55,000 convertible warrants that were issued to 27 allottees on a preferential basis.

Warrant Issuance Details

The convertible warrants were originally allotted on October 01, 2024, at an issue price of ₹352.00 per warrant. The pricing structure included a warrant subscription price of ₹88.00 per warrant and a warrant exercise price of ₹264.00 per warrant. As per regulatory requirements, warrant holders paid 25% of the total issue price as an initial subscription amount at the time of allotment.

Forfeiture Under SEBI Regulations

Under Regulation 169(3) of Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, warrant holders had 18 months from the date of allotment to exercise their conversion option. The deadline expired on March 31, 2026, with none of the 27 allottees choosing to convert their warrants into equity shares.

Breakdown of Forfeited Holdings

The forfeited warrants span across promoter group and non-promoter categories. The largest individual forfeitures include Petflakes Poymers India Private Limited with 4,62,500 warrants, Devbhoomi Commercial Private Limited with 4,32,500 warrants, and BGP 11 Analytics Private Limited (promoter group) with 2,20,000 warrants.

Other significant forfeitures include India Equity Fund 1 (1,00,000 warrants), Lalit Malik (1,00,000 warrants), and Anil Kumar Behl (75,000 warrants). The remaining warrants were distributed among various individual investors and entities with holdings ranging from 10,000 to 50,000 warrants each.

Regulatory Compliance

The company has informed both the Bombay Stock Exchange and National Stock Exchange about the forfeiture as part of its compliance obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The forfeiture represents the automatic enforcement of regulatory provisions designed to ensure timely decision-making by warrant holders regarding equity conversion.

Race Eco Chain has informed stakeholders about a GST search conducted at its Noida office, providing detailed disclosure under regulatory requirements and confirming no violations were found during the examination.

GST Search Operations Details

The company disclosed that GST authorities conducted search operations at its corporate office on March 27, 2026. The search was carried out by the Commissioner, CGST Commissionerate, Noida, as part of regulatory procedures undertaken by tax authorities.

Regulatory Compliance Disclosure

Race Eco Chain has provided comprehensive details pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that no search authorization direction or order was issued, and no violations or contraventions were committed or alleged to be committed during the examination process.

Impact Assessment

The management has provided clear assurance regarding the search's impact on business operations. The company has specifically stated that the GST search operations resulted in no financial, operational, or other quantifiable impact on its activities.

The formal disclosure demonstrates the company's commitment to transparency in communicating regulatory developments to stakeholders and maintaining compliance with both tax regulations and stock exchange listing requirements.