Balkrishna Industries Limited received a CGST adjudication order confirming a demand of ₹1.05 crore along with an equivalent penalty for financial years 2021-22 and 2022-23. The order, issued by the Assistant Commissioner of CGST in Bhuj, relates to the disallowance of input tax credit.

The company received the intimation via email on September 21, 2026, at 6:14 pm. This communication falls under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates disclosure of material events to stock exchanges.

Nature of the regulatory action

The adjudication order was passed under Section 74(1) of the CGST Act, 2017, read with corresponding provisions of the Gujarat State GST Act, 2017, and Section 20 of the IGST Act, 2017. The primary allegation involves the disallowance of input tax credit claimed during the specified fiscal years.

Company response and impact

Balkrishna Industries stated that there is no impact on its financial, operational, or other activities resulting from this alleged tax demand. The company noted that the order is appealable and it is currently in the process of contesting the matter at a higher appellate level. The disclosure was signed by Vipul Shah, Director and Company Secretary, on September 22, 2026.

Balkrishna Industries approved the issuance of ₹550 crore in non-convertible debentures (NCDs) on a private placement basis. The Finance Committee of the Board of Directors gave its approval on September 3, 2026.

NCD issuance details

The company’s board approved the fundraise through rated, listed, senior, unsecured, redeemable, and non-cumulative non-convertible debentures. The offering is restricted to eligible investors permitted under applicable laws rather than the general public.

The issuance is structured across three distinct series, each with varying tenors and coupon rates. This structure allows the company to manage its debt maturity profile more flexibly.

Series-wise breakdown

The ₹550 crore aggregate principal amount is divided into three series, all with a face value of ₹1 lakh per debenture. The allotment date for all series is September 3, 2026.

Non-convertible debentures are a common route for corporates to raise debt capital from institutional and high-net-worth investors. The private placement route allows companies to access funds efficiently without a public offering process. The interest payments are scheduled as specified in the key information document, and there are no charges or security created over the assets for these instruments.