Zuari Agro Chemicals Limited has announced the allotment of equity shares by its subsidiary Zuari Maroc Phosphates Private Limited (ZMPPL) through a preference share conversion mechanism. The transaction was completed on December 22, 2025, and disclosed under Regulation 30 of the SEBI LODR Regulations.

Share Allotment Details

ZMPPL has allotted 69,16,173 equity shares worth ₹6.92 crores to Zuari Agro Chemicals Limited through the conversion of compulsorily convertible preference shares. The conversion represents a significant corporate action between the parent company and its subsidiary.

Conversion Mechanism

The equity shares were issued pursuant to the conversion of 69,16,173 compulsorily convertible preference shares (CCPS) of face value ₹10.00 each previously held by Zuari Agro Chemicals Limited in ZMPPL. This conversion mechanism allows the company to transform its preference shareholding into equity participation in the subsidiary.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement references a previous disclosure dated October 10, 2025, indicating this transaction was part of a planned corporate restructuring process.

Corporate Structure Impact

This share conversion strengthens Zuari Agro Chemicals Limited's equity position in ZMPPL, converting preference rights into direct equity ownership. The transaction maintains the company's investment value while potentially providing enhanced voting rights and participation in the subsidiary's growth.

Zuari Agro Chemicals Limited (ZACL) has announced significant financial gains resulting from major corporate restructuring activities in its latest quarterly results. The company reported exceptional gains totaling Rs. 1,168.96 crores, stemming from strategic business transfers and equity share transactions.

Key Restructuring Moves

Transfer of MCFL Investment

ZACL transferred its investment in Mangalore Chemicals and Fertilizers Limited (MCFL) to Zuari Maroc Phosphates Private Limited (ZMPPL) for Rs. 418.13 crores. This move was part of a Composite Scheme of Arrangement approved by the National Company Law Tribunal (NCLT).

Equity Share Exchange with Paradeep Phosphates Limited

Following the NCLT-approved scheme, MCFL was amalgamated with Paradeep Phosphates Limited (PPL). Consequently, ZACL is set to receive equity shares in PPL in exchange for its MCFL shares, resulting in a gain of Rs. 986.91 crores.

Sale of Mahad Plant

ZACL completed the sale of its granulated single super phosphate plant at Mahad, Maharashtra, to MCFL for Rs. 72.75 crores, recognizing a gain of Rs. 9.32 crores.

Financial Impact

The corporate restructuring has had a significant impact on ZACL's financial position:

Other Corporate Developments

• MCFL ceased to be a subsidiary of ZACL effective September 26, following NCLT approval of the composite scheme.
• The board has approved seeking an extension for a Rs. 110 crores Inter Corporate Deposit from Zuari Industries Limited.
• Approval has been granted for availing fresh Inter Corporate Deposits of Rs. 85 crores from Adventz Finance Private Limited.
• ZACL has filed a joint settlement application with SEBI for an ongoing matter, awaiting the final order.

These strategic moves mark a significant shift in Zuari Agro Chemicals' corporate structure and are expected to have a substantial impact on the company's financial outlook.