Race Eco Chain to demerge Biomass & Restore Bag divisions; Anil Kumar Behl resigns as Independent Director
Race Eco Chain Limited's board approved a demerger of its Biomass and Restore Bag divisions into GEOECO GREEN ENERGY LIMITED and RACE GATEWAY LIMITED, respectively. Mr. Anil Kumar Behl resigned as Independent Director. Mr. Sanjay Kukreja appointed as Audit Committee Chairperson. Corporate office shifting to Noida approved.
A demerger is a significant corporate restructuring event that can fundamentally alter the company's structure and value proposition, impacting shareholders and operations.
The demerger is expected to unlock value and create focused entities, which is generally viewed positively by the market. The changes in directorship and committee composition are standard corporate actions.
Race Eco Chain Limited announced a significant board meeting outcome on December 15, 2025. The board approved a proposed scheme of arrangement for the demerger of its Biomass Division into GEOECO GREEN ENERGY LIMITED (Resultant Company No. 1) and its Restore Bag Division into RACE GATEWAY LIMITED (Resultant Company No. 2), pursuant to the Companies Act, 2013 and Income Tax Act, 1961.
The company also accepted the resignation of Mr. Anil Kumar Behl as an Independent Director, effective December 13, 2025, due to personal reasons. Concurrently, Mr. Behl's designation was changed from Non-Executive Independent Director to Non-Executive Non-Independent Director, with his term extending up to December 14, 2028.
Following these changes, the Audit Committee was reconstituted. Mr. Sanjay Kukreja has been appointed as the Chairperson of the Audit Committee, effective December 15, 2025, while Mr. Anil Kumar Behl will continue as a member. The committee composition now includes Mr. Sanjay Kukreja (Chairperson), Mr. Anil Kumar Behl (Member), and Mr. Pranav Vasan (Member).
Furthermore, Race Eco Chain Limited will shift its corporate office from Ghaziabad, Uttar Pradesh, to Noida, Uttar Pradesh, with the new address being A-115, Sector 136, Noida, Uttar Pradesh, India- 201304. The company also disclosed that the Biomass Division had a turnover of ₹1,870.70 crore (4.06% of total turnover) and the Restore Bag Division had a turnover of ₹893.82 crore (1.94% of total turnover) in FY 2024-25. The proposed share exchange ratio involves 113 equity shares of GEOECO for every 100 held in RACE, and 27 equity shares of GATEWAY for every 25 held in RACE.
What to do with a filing like this
Race Eco Chain Limited filed this with the NSE as a statutory disclosure, categorised under demerger. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Race Eco Chain Limited. Read the original for the full detail.