Race Eco Chain Limited, a prominent player in the recycling industry, has announced its acquisition of a 51% stake in Ganesha Recycling Chain Private Limited for a consideration of INR 2.55 crore. This strategic acquisition is expected to significantly bolster Race Eco Chain's presence in the Indian recycling market. Ganesha Recycling Chain, incorporated only in 2024, is an emerging company in the recycling sector.

Details of the Acquisition
Race Eco Chain has acquired 2,55,000 equity shares of Ganesha Recycling Chain at a price of INR 100 per share, including a premium of INR 90 per share. The acquisition is a cash transaction, with the company securing a 51% stake in the business. As a result, Race Eco Chain becomes the majority shareholder, further solidifying its position in the recycling sector.

The transaction falls under the category of related party transactions, as Ganesha Recycling Chain is a subsidiary of Race Eco Chain. However, the transaction has been conducted at arm’s length, ensuring transparency and fairness in the process. Notably, promoter/promoter group/group companies of Race Eco Chain do not have any direct interest in the acquisition.

Investment Rationale and Business Impact
The acquisition of Ganesha Recycling Chain aligns with Race Eco Chain’s long-term corporate objectives. By increasing its stake in the recycling business, Race Eco Chain aims to enhance its capacity and reach in India's growing recycling sector. This move will provide the company with more control over operations and better access to the Indian market.

The investment of INR 2.55 crore reflects the company’s confidence in the potential of Ganesha Recycling Chain and its commitment to expand business operations in the country. This strategic investment is expected to pave the way for further growth and expansion in the industry, especially as environmental sustainability continues to gain importance globally.

Regulatory Approvals and Compliance
As the acquisition does not require any specific government approvals or regulatory clearances, the process is expected to proceed smoothly. According to the details, there are no significant legal barriers to the acquisition, which has been structured in compliance with applicable Indian laws.

Ganesha Recycling Chain: Company Background
Ganesha Recycling Chain Private Limited is a newly established entity, incorporated on 10th September 2024. While the company’s turnover for the past three years is not available, its entry into the recycling industry comes at an important time when businesses worldwide are focusing on sustainable practices. The company is located in India and will work towards strengthening the recycling infrastructure in the country.

Future Outlook and Synergies
With this acquisition, Race Eco Chain not only secures a larger foothold in the Indian recycling market but also gains access to new technologies and processes that Ganesha Recycling Chain is likely to bring in the coming years. The synergy between the two entities will lead to more efficient operations, better resource management, and a stronger competitive position in the Indian market.

Race Eco Chain’s investment reflects its strategic commitment to the growth of the recycling industry in India, which continues to evolve. The expansion of Race Eco Chain into this critical area of business is expected to contribute significantly to the company’s long-term success, both in India and potentially in other global markets.

Conclusion
Race Eco Chain Limited’s acquisition of Ganesha Recycling Chain marks a pivotal moment for the company as it looks to expand its business in the recycling industry. With this acquisition, Race Eco Chain has not only secured a significant stake in a promising company but has also further entrenched itself as a leader in India’s growing recycling sector. The transaction will allow Race Eco Chain to better capitalize on the increasing demand for sustainable solutions in waste management and recycling.

By investing in Ganesha Recycling Chain, Race Eco Chain is positioning itself to play a critical role in the future of India’s recycling industry, contributing to both environmental sustainability and the company’s bottom line.

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