GRP Limited has announced a significant investment of ₹5 crores in its wholly-owned subsidiary GRP Circular Solutions Limited (GCSL) through a rights issue of equity shares. The investment aims to strengthen GCSL's financial position and support future growth in the plastics recycling ecosystem.

Investment Details

The company subscribed to and was allotted 50 lakh equity shares of GCSL with a face value of ₹10.00 each, issued at par on a rights issue basis. The transaction represents a cash consideration totaling ₹5.00 crores.

About GRP Circular Solutions Limited

GCSL was incorporated on August 3, 2022, as a wholly-owned subsidiary of GRP Limited in India. The subsidiary operates in the specialized segment of manufacturing recycled polypropylene and compounded polypropylene, contributing to the plastics recycling ecosystem.

Strategic Objectives

The investment is designed to achieve several strategic objectives for GCSL's business operations and growth trajectory:

• Meet the subsidiary's immediate funding requirements
• Strengthen GCSL's financial position and operational capabilities
• Enable the company to capitalize on future growth opportunities
• Support expansion within the plastics recycling ecosystem

Regulatory Compliance

The investment has been structured as a related party transaction conducted on an arm's length basis. GRP Limited has confirmed that none of the company's promoters, promoter group, or other group companies have any interest in this investment except to the extent of their existing shareholding.

Following this investment, there is no change in the percentage shareholding of GRP Limited in GCSL, and the subsidiary continues to remain wholly-owned by the parent company. The transaction has been disclosed in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

GRP Limited has announced a credit rating downgrade by CRISIL Ratings, citing deteriorating business fundamentals due to trade tariff impacts. The company informed stock exchanges on December 11, 2025, about the revision in its credit rating under regulatory disclosure requirements.

Credit Rating Revision Details

CRISIL Ratings has downgraded the credit rating on GRP Limited's bank facilities due to weakening business and financial risk profile. The rating agency specifically cited trade tariffs and their resultant impact on expected operating performance as the primary reason for the downgrade.

The revised credit ratings are structured as follows:

Impact of Trade Tariffs

The downgrade reflects CRISIL's assessment of the company's deteriorating business environment. Trade tariffs have created challenges for the company's operational outlook, leading to concerns about future financial performance. The rating agency's decision indicates expectations of reduced operating efficiency and potential pressure on the company's financial metrics.

Regulatory Compliance

GRP Limited has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company communicated the rating revision to both BSE Limited and National Stock Exchange of India Limited on the same day. Company Secretary and Compliance Officer Jyoti Sancheti signed the regulatory filing, ensuring compliance with listing requirements.

Financial Exposure

The credit rating revision affects bank loan facilities totaling ₹152.62 crores. While the short-term rating remains stable at CRISIL A2, the long-term rating downgrade from A- to BBB indicates increased credit risk perception. This revision may impact the company's borrowing costs and future access to credit facilities in the current challenging business environment.