GHCL Ltd. — Capital/Financing Update 2023

Apr 1, 2023

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April 1, 2023 श�नवार - – – एकादशी, चैत्र शुक्लप�

२०८० �वक्रम सम्वत

National Stock Exchange of India BSE Limited Limited Corporate Relationship Department, “Exchange Plaza” 1[st] Floor, New Trading Ring, Rotunda Building, Bandra – Kurla Complex, P.J. Towers, Bandra (E), Mumbai – 400 051 Dalal Street, Fort, Mumbai – 400 001 NSE Code: GHCL BSE Code: 500171

Dear Sir/Madam,

Press Release - GHCL Limited completes demerger of spinning business into GHCL Textiles Limited, effective from April 1, 2023

Subject: Disclosure of Material Event I Information under Regulation 30 of SEBI (LODR) Regulations, 2015

We would like to inform that GHCL Limited completes demerger of spinning business into GHCL Textiles Limited, effective from April 1, 2023

In this regard, please find enclosed herewith copy of the Press Release issued by the Company for your reference and record.

Please note that copy of this intimation is also available on the website of BSE Limited (www.bseindia.com/corporates), National Stock Exchange of India Limited (www.nseindia.com/corporates) and website of the Company (www.ghcl.co.in ).

You are requested to kindly take note of the same.

Thanking you

Yours truly

For GHCL Limited

Digitally signed by Bhuwneshwar Bhuwneshwar Prasad Mishra Prasad Mishra Date: 2023.04.01 18:28:50 +05'30'

Bhuwneshwar Mishra Sr. GM - Sustainability & Company Secretary (Membership No.: FCS 5330)

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GHCL Limited completes demerger of spinning business into GHCL Tex�les Limited, effec�ve April 1, 2023

Record date to determine eligibility of shareholders of GHCL Limited to receive shares of GHCL Textiles Limited set at April 8, 2023

GHCL Textiles Limited set to list on National Stock Exchange and Bombay Stock Exchange post regulatory approval

Demerger details

Demerger ra�onale

• GHCL shareholders to get shares of GHCL Tex�les in the ra�o of 1:1, one share of Rs. 2 each for every share held in GHCL of Rs. 10 face value

• No change in the shareholding patern of GHCL Tex�les

• GHCL Tex�les assumes all the assets and liabili�es of the spinning business. To be listed on both NSE & BSE post regulatory approvals

• Demerger aims to unlock and maximize value for all stakeholders.

• Focus on opera�ons and customers

• Brings forth focused leadership

• Addresses independent opportuni�es with prudent capital alloca�on

New Delhi, April 1, 2023: GHCL Limited, India’s leading Chemical & Tex�le Company, announced effec�ve date of demerger of its spinning business as April 1, 2023, which will henceforth be referred to as GHCL Tex�les Limited. This marks comple�on of demerger of tex�les business of GHCL Ltd.

Commen�ng on the announcement, Mr. R S Jalan, Managing Director, GHCL Limited said , “Over the past few years, GHCL Limited has delivered a significant operational performance, consistently generated healthy cash flows, and strengthened its balance-sheet. At the same time, have meticulously enhanced our footprint through various value-creating capacity and capability augmentations. Having distinct operating entities shall allow both businesses to prioritize relevant focus areas and respond to market opportunities in a nimbler manner. This demerger is envisaged to create strong independent businesses uniquely positioned to enhance stakeholders' value over time."

-ENDS-

ABOUT GHCL Limited

GHCL Limited is engaged in the manufacture of Soda Ash (Anhydrous Sodium Carbonate), that is a major raw material for detergents & glass industries and Sodium Bicarbonate (baking soda). Through a demerger it has separated its spinning business into GHCL Tex�les Limited, which will con�nue to produce mul�ple varie�es of fibre (yarn), sold to domes�c consumers as well as exported worldwide.

i.e. Responsible Stewardship, Social Inclusiveness, Promo�ng Rela�onship and Adding Value. Both GHCL Limited and GHCL Tex�les Limited remain commited to working closely with stakeholders at various plant loca�ons for promo�ng the agenda of sustainability underpinning on the core values of Respect, Trust, Ownership and Integrated Teamwork.

http://ghcl.co.in/