UCAL Limited's Board of Directors has approved a significant strategic move involving the dilution of its shareholding in its material subsidiary, Ucal Holdings Inc. (UHI), USA, by up to 90%. This could also lead to a change or extinguishment of UCAL's control over UHI. The decision, subject to shareholder approval, aims to induct potential investors into UHI.

In a separate transaction, the company's wholly-owned material subsidiary, Ucal Polymer Industries Limited (UPIL), will sell a residential plot measuring 6.97 acres for a cash consideration not exceeding ₹45 Crore to Sujo Land and Properties Private Limited, a promoter group company. This sale constitutes over twenty percent of UPIL's assets.

The Board also approved the draft Postal Ballot Notice for seeking shareholder consent for both the UHI stake dilution/control change and the UPIL plot sale. M/s. P Muthukumaran and Associates have been appointed as the scrutinizers for the postal ballot process. The cut-off date for determining eligible shareholders for the postal ballot is fixed as January 2, 2026.

The Board meeting commenced at 5:45 PM and concluded at 6:20 PM on January 13, 2026.

Annexure A provides further details on the sale of the residential plot by UPIL. The agreement for sale is expected to be executed in due course, with tentative completion of the sale by the end of June 2026, subject to approval from Mahindra Integrated Township. The transaction is considered an arms-length transaction, and prior approval from UCAL's Audit Committee and Board was obtained on January 13, 2026, despite the parent company not being a direct party.