Shri Bajrang Alliance Limited has informed BSE about the reconstitution of its partnership interest in associate entity Shri Bajrang Chemical Distillery LLP, pursuant to Regulation 30 of SEBI LODR Regulations. The company's partnership stake has been reduced from 30% to 16% through a consensual arrangement among existing partners, effective February 28, 2026.

Partnership Restructuring Details

The reconstitution was executed through a Supplemental LLP Agreement dated February 28, 2026, involving revision of capital structure, profit-sharing ratio, and partners' capital accounts. All partners of SBCD LLP provided their consent for the partnership arrangement restructuring.

Transaction Structure and Consideration

The company's capital contribution has been proportionately reduced and repaid or adjusted in accordance with the revised partnership interest. The remaining partners have correspondingly adjusted their capital accounts, including capitalization of their share in accumulated profits and retained earnings. No separate purchase consideration or premium was paid for this internal restructuring.

Revised Partnership Structure

Following the reconstitution, the total capital contribution of SBCD LLP stands at ₹10,45,25,445. The revised structure includes eight partners from the promoter group, with Shri Pawan Goel holding the largest profit-sharing ratio at 21.00%, followed by three partners each holding 16.80%.

Strategic Rationale and Impact

The company stated that the purpose of dilution is to optimize capital allocation, enhance liquidity and financial flexibility, reduce long-term capital commitment and contingent exposures, align investments with core business priorities, and enable redeployment of capital towards expansion of principal operating segments. The LLP continues as a strategic investment, and the reconstitution is expected to improve capital efficiency, liquidity position, and funding flexibility.

Regulatory Compliance

The Audit Committee of the company has taken note of the reconstitution, and the matter will be placed before the Board of Directors for noting in the forthcoming meeting. The transaction involves related parties as all partners belong to the promoter group, but was executed on mutually agreed terms among partners. No change in control of the LLP has occurred, and no external third party is involved in the transaction.

Shri Bajrang Alliance Limited has announced its board's decision to initiate the disinvestment process for its partnership interest in Shri Bajrang Chemical Distillery LLP (SBCD LLP). The board meeting, held on February 10, 2026, addressed strategic financial restructuring to enhance the company's operational flexibility.

Board Decision and Strategic Rationale

The board approved the initiation of evaluation of options for disinvestment of the company's 30% partnership interest in SBCD LLP. This decision follows detailed deliberations regarding the company's current financial position and future capital requirements.

Financial Impact and Credit Considerations

The company currently holds 30% partnership interest in SBCD LLP and has extended corporate guarantees for the LLP's borrowings. The board noted that SBCD LLP's significant outstanding borrowings and the company's exposure through capital investment and corporate guarantees have impacted the company's leverage levels and credit profile.

Infomerics Valuation and Rating Pvt. Ltd. highlighted similar observations in its Credit Rating Press Release dated March 28, 2025, reinforcing concerns about the company's current financial structure.

Strategic Business Focus

The board emphasized the company's need for financial flexibility and capital resources to expand core business operations. The disinvestment decision supports the company's strategic focus on two key areas:

• Food Business expansion
• Steel Rolling Business growth

The board determined that continued long-term capital commitment and contingent liabilities related to SBCD LLP may constrain the company's ability to raise funds and optimize its capital structure for these core business segments.

Implementation Framework

The disinvestment process will be subject to several conditions and approvals:

• Valuation of the partnership interest
• Mutual discussions with SBCD LLP and its partners
• Negotiation of contractual terms
• Receipt of necessary statutory and regulatory approvals

Board Authorizations

The board has granted specific authorities to facilitate the disinvestment process:

These authorities have been granted to any Director and the Company Secretary of the company, severally.

Regulatory Compliance and Future Updates

The disclosure has been made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has committed to providing further updates as material developments occur during the disinvestment process.

The announcement reflects the company's proactive approach to financial management and strategic focus on core business operations while maintaining transparency with stakeholders and regulatory compliance.