Jain Resource Recycling Converts Loan to Equity in Subsidiary Jain Ikon Global Ventures
Jain Resource Recycling Limited (JRRL) has executed a Loan Conversion Agreement with its subsidiary, Jain Ikon Global Ventures FZC, to convert an outstanding loan into equity shares. The agreement, formalized on August 25, 2026, pertains to the total outstanding loan amount of AED 1,70,64,000.The transaction details specify that the loan, which was advanced by Jain Resource Recycling Limited to Jain Ikon, will be converted into 11,376 equity shares of Jain Ikon. The conversion is set at the face value of the existing equity shares, which is AED 1,500 each. Upon the completion of the conversion and allotment of the shares, the loan will be extinguished in full, and the Company will have no further claim against Jain Ikon concerning the converted amount.
The conversion is a strategic move intended to consolidate the Company's existing exposure in Jain Ikon. The agreement highlights that Jain Ikon has ceased operations and possesses a negative net worth. The consolidation is also viewed as facilitating the subsequent divestment of JRRL's entire investment in the entity.
Jain Ikon Global Ventures FZC is confirmed to be a subsidiary of Jain Resource Recycling Limited. The transaction constitutes a related party agreement, and it is stated that the conversion is being executed at a price certified by a valuer, thereby ensuring it is on an arm's length basis.
Key details of the loan and the conversion process are summarized below:
| Particulars | Details |
|---|---|
| Lender | Jain Resource Recycling Limited |
| Borrower | Jain Ikon Global Ventures FZC (Subsidiary) |
| Date of Agreement | August 25, 2026 |
| Loan Amount (to be converted) | AED 1,70,64,000 (approx. INR 44.50 Crores) |
| Conversion Ratio | 11,376 equity shares |
| Share Face Value | AED 1,500 per share |
| Loan Nature | Unsecured working capital loan (Original loan sanctioned in May 2024) |
Prior to the conversion, Jain Resource Recycling Limited held 70.00% of the equity share capital of Jain Ikon. Following the completion of the loan conversion, the Company's shareholding in Jain Ikon is set to increase to 99.74%, ensuring that Jain Ikon continues to operate as a subsidiary of the Company.
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