Intimation for the further Investment by the Subsidiary Company into the Step down subsidiary
RACE · price
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Race Eco Chain Ltd's subsidiary, Ganesha Recycling Chain Private Limited, has invested Rs. 2 crore (20 million) in its step-down subsidiary, GEM Polymers Private Limited. The investment was made through subscription of 2,00,000 equity shares at Rs. 10 each, giving Ganesha Recycling a 49% stake in GEM Polymers. GEM Polymers is a newly incorporated company (January 2024) engaged in the recycling business with nil turnover. This transaction qualifies as a Related Party Transaction under SEBI regulations. The investment aligns with Race Eco Chain's corporate objective to expand its recycling business operations.
This is an intra-group investment for business expansion in the recycling sector. While it shows the company's commitment to growth through subsidiaries, the investment size is modest relative to Race Eco Chain's overall operations. Shareholders should monitor whether this step-down subsidiary generates meaningful revenue in the future.