Race Eco Chain invests Rs 3 crore in subsidiary via rights issue

The company was allotted 2,55,000 equity shares of face value Rs 10 each at a price of Rs 100 per share, including a premium of Rs 90 per share, on 11 June 2025.

Ganesha Recycling Chain, incorporated on 10 September 2024, currently has a post-issue authorised capital of Rs 10 crore and a paid-up capital of Rs 7 crore.

The main objective of the investment is to support corporate goals and business expansion. The company now holds a 51% stake in Ganesha Recycling Chain.

Ganesha Recycling Chain, being a subsidiary, is a related party of the company. The transaction falls within the ambit of related party transactions. No promoter, promoter group, or group companies have any interest in the entity. Further, the investment in the subsidiary company is made on an arm's length basis.

Race Eco Chain, with RACE symbolizing recycling and circular economy, is a leading player dedicated to waste management in India. As one of the fastest-growing supply chains for plastic waste, the company is committed to organizing the unorganized waste industry.

The company reported a consolidated net profit of Rs 1.48 crore in Q4 FY25, significantly higher than Rs 0.11 crore recorded in Q4 FY24. Revenue from operations surged 127.7% year-on-year to Rs 193.95 crore in the quarter ended 31 March 2025.

The scrip declined 1.12% to Rs 255.20 on the BSE.