DRC Systems India Limited has informed the Exchange about Allotment by the Subsidiary Company.
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DRC Systems India Limited has informed the stock exchanges that its subsidiary, Inexture Solutions Limited, has allotted further equity shares to other parties. As a result, DRC Systems' indirect stake in Inexture has been diluted from 50.02% to 49.18%. Because the holding has dropped below 50%, Inexture will no longer be treated as a subsidiary of DRC Systems and will instead be reclassified as an Associate company, effective March 6, 2026. The change is due to new share issuance by Inexture, not any action by DRC Systems to sell or reduce its holding.
This is a structural change in DRC Systems' relationship with Inexture, not a cash transaction. Going forward, DRC will likely account for Inexture using the equity method instead of full consolidation, which may reduce the scale of revenues and profits reported in DRC's consolidated financials. For shareholders, this means Inexture's full financial performance will no longer be fully reflected in DRC's books, though DRC will still share in the associate's profits proportionally.