Race Eco Chain Limited has announced a further investment of ₹51.00 lakh in its subsidiary Ganesha Recycling Chain Private Limited through a rights issue subscription. The investment was completed on January 19, 2026, with the company maintaining its controlling stake in the recycling-focused subsidiary.

Investment Details

The investment structure demonstrates Race Eco Chain's continued commitment to expanding its presence in the recycling sector:

The transaction was conducted through a rights issue, allowing Race Eco Chain to subscribe to additional equity shares in its subsidiary while maintaining its majority control with a 51% ownership stake.

Subsidiary Profile

Ganesha Recycling Chain Private Limited operates as a specialized entity within the recycling industry. The subsidiary's current financial structure reflects its recent incorporation and growth trajectory:

Regulatory Compliance

The investment falls under related party transactions as defined by SEBI regulations, given the parent-subsidiary relationship between the entities. Race Eco Chain has confirmed that:

• The transaction was conducted on an arms-length basis
• No promoter, promoter group, or group companies have any additional interest in the acquired entity
• The investment aligns with the company's overall corporate objectives
• No governmental or regulatory approvals were required for this acquisition

Strategic Rationale

The additional investment represents part of Race Eco Chain's broader corporate strategy to expand its business operations within the recycling sector. The company has indicated that this investment supports its overall corporate objectives and business expansion plans in the recycling industry, which aligns with its core business focus on recycling and circular economy solutions.

The transaction was completed entirely through cash consideration, demonstrating the parent company's financial commitment to strengthening its subsidiary operations and expanding its market presence in the recycling sector.

Race Eco Chain Limited's board of directors has approved a significant corporate restructuring plan involving the demerger of key business divisions and important governance changes during its meeting held on December 15, 2025. The meeting, which commenced at 3:00 PM and concluded at 5:30 PM, addressed multiple strategic initiatives as disclosed in the company's regulatory filing under Regulation 30 of SEBI Listing Regulations.

Demerger Scheme Details

The board approved a comprehensive scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013, involving three entities:

The demerger will separate the company's diversified waste management operations into focused entities. The Biomass Division engages in trading briquettes made from waste materials including coconuts, sunflower, mustard, and groundnut. The Restore Bag Division focuses on trading cloth bags, bed sheets, and other home furnishing items.

Share Exchange Ratios

Shareholders will receive new equity shares in both resulting companies based on specific ratios:

Both resulting companies will seek listing on BSE Limited and National Stock Exchange of India Limited. The scheme also addresses the treatment of 19,55,000 convertible warrants, ensuring warrant holders receive proportionate shares in the resulting entities based on the established share entitlement ratios.

Board Changes and Governance

Significant changes were made to the company's board structure and committee composition:

Mr. Anil Kumar Behl, a 67-year-old Chartered Accountant with over 40 years of practice experience, will continue serving as a member of the Audit Committee despite stepping down as Chairperson. His resignation was attributed to personal reasons with no material concerns beyond those mentioned in his resignation letter.

Strategic Rationale

The demerger aims to unlock value for shareholders through focused business operations. The company believes that separating the Biomass and Restore Bag divisions will enable each entity to chart its own growth path in the waste management industry. The restructuring is expected to attract specialized investors and strategic partners whose investment strategies align with specific industry dynamics.

The scheme will provide existing shareholders with independent market-driven valuations of their holdings in the resulting companies while maintaining the option to remain invested in waste management-focused listed entities. The demerger also aims to leverage cross synergies among the companies while ensuring long-term stability and strategic support.

Corporate Office Relocation

Race Eco Chain announced the shifting of its corporate office where books of accounts will be maintained from 56/33, Site-IV Industrial Area Sahibabad, Ghaziabad, Uttar Pradesh to A-115, Sector 136, Noida, Uttar Pradesh. This relocation supports the company's operational restructuring efforts and aligns with the strategic reorganization.

All decisions require regulatory approvals and shareholder consent as per applicable provisions of the Companies Act, 2013, SEBI regulations, and Income Tax Act, 1961. The detailed scheme documents and annexures have been uploaded on the company's website at www.raceecochain.com for stakeholder reference.