Aeroflex Industries Limited has received a significant tax demand from the Income Tax Department, with authorities seeking Rs 41.76 crore for assessment year 2018-19. The company disclosed this development to stock exchanges on March 27, 2026, under regulatory compliance requirements.

Tax Department Order Details

The Assessment Unit of the Income Tax Department issued the order under sections 147 and 144B of the Income Tax Act, 1961. The demand stems from the disallowance of a claim related to waiver of interest on working capital loan in a one-time settlement, which the department considers non-taxable under section 41 of the Income Tax Act.

Company's Response Strategy

Aeroflex Industries management has indicated its intention to challenge the order through proper legal channels. The company plans to file an appeal before the Appellate Authority within the prescribed time limit under the law. Based on the merits of the case, management remains optimistic about achieving a favorable outcome.

The company's leadership expressed confidence that the order will not have any material financial impact on operations, suggesting they believe the demand lacks substantial grounds.

Regulatory Compliance and Disclosure Timeline

The company acknowledged a delay in regulatory disclosure, explaining that the notification could not be made within the stipulated 24-hour timeline prescribed under SEBI regulations. The delay occurred because:

• The order was received via email on March 25, 2026 at 10:17 PM
• Concerned personnel were on leave on March 26, 2026 due to Ashtami and Ram Navami festivals
• The matter was escalated to the Company Secretary and Compliance Officer on March 27, 2026 at 10:00 AM

Financial and Operational Impact Assessment

Despite the substantial demand amount, Aeroflex Industries maintains that the order is unlikely to create material financial stress. The company's confidence in appealing the decision suggests management believes they have strong grounds to contest the Income Tax Department's interpretation of the working capital loan interest waiver treatment.

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with shareholders and market participants about this significant regulatory development.

Aeroflex Industries Limited has successfully completed a preferential allotment of equity shares, raising approximately ₹55 crore from non-promoter investors. The Board of Directors approved the allotment during their meeting held on February 03, 2026, marking a significant capital infusion for the company.

Share Allotment Details

The company allotted 30,10,398 fully paid-up equity shares with a face value of ₹2.00 each at an issue price of ₹182.70 per share. This pricing includes a premium of ₹180.70 per share, generating total proceeds of ₹54,99,99,714.60.

Investor Composition

The preferential issue attracted six non-promoter investors, with notable participation from established market participants:

Impact on Share Capital

The allotment has resulted in an expansion of the company's equity base, with the issued and paid-up capital increasing substantially:

Shareholding Changes

The allotment has modified the shareholding pattern for participating investors. Mr. Ashish Rameshchandra Kacholia's holding increased from 25,98,080 shares (2.01%) to 30,08,589 shares (2.27%). Bengal Finance and Investment Private Limited's stake grew from 23,15,935 shares (1.79%) to 27,26,444 shares (2.06%). Four investors - Mr. Sanjay Babulal Surana, Mr. Vaibhav Jayantilal Shah, Madhu Silica Private Limited, and Mr. Nareshkumar Mahasukhlal Mehta - were new entrants with no prior shareholding.

Regulatory Compliance

The preferential issue was conducted in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Companies Act, 2013. The newly allotted shares rank pari passu with existing equity shares in all respects, including dividend payments and voting rights. The Board meeting commenced at 12:30 PM and concluded at 12:39 PM on February 03, 2026.