Century Enka Limited has announced the acquisition of additional equity shares in ABREL Century Energy Limited (ABRELCEL) through a rights issue, aimed at maintaining regulatory compliance for captive power plant operations. The transaction involves 37,96,086 equity shares acquired for Rs. 3,79,60,860.

Acquisition Details

The share acquisition was structured to meet specific regulatory requirements under Indian electricity regulations. Century Enka made the application for additional shares to maintain the minimum 26% equity shareholding necessary to qualify as a captive user of the power producer.

Target Company Profile

ABREL Century Energy Limited operates as a Special Purpose Vehicle (SPV) in the renewable energy sector. The company was incorporated on 10th March 2022 and focuses on wind-solar hybrid energy projects covering power generation, distribution, and transmission.

Regulatory Compliance

The acquisition serves a specific regulatory purpose under the Electricity Act, 2003 read with Electricity Rules, 2005. These regulations require power consumers to maintain a minimum 26% equity stake in power producers to qualify for captive user status.

Key compliance aspects include:

• Maintaining minimum 26% shareholding requirement
• Qualifying the power plant as a group captive power plant
• Ensuring arm's length transaction through par value acquisition
• Meeting captive project rules for power consumption

Transaction Timeline

Century Enka completed the procedural requirements for the rights issue on 27th March 2026. The company transferred the application money and submitted the filled rights issue application form to ABRELCEL on the same date. The shares are expected to be credited to Century Enka's demat account following completion of applicable compliances and corporate actions.

Strategic Rationale

The transaction represents a related party acquisition designed to ensure continued compliance with captive power plant regulations. As ABRELCEL operates as a SPV specifically established for captive power projects through wind and solar energy generation, the additional shareholding acquisition supports Century Enka's power requirements while maintaining regulatory compliance for captive user qualification.

Century Enka Limited has received a penalty order from the Income Tax Department's National Faceless Assessment Centre for assessment year 2020-21. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Penalty Details and Assessment

The Income Tax Department has imposed a penalty of Rs 38,29,964 under section 270A of the Income Tax Act. This penalty amount represents 200% of the calculated tax of Rs 19,14,982 on underreported income, as specified under section 270A(10)(a) for assessment year 2020-21.

Nature of Violation

The penalty stems from a difference between the returned income filed by the company and the assessed income as determined by the Assessment Order passed under section 143(3) of the Income Tax Act. The National Faceless Assessment Centre identified this discrepancy during its assessment process for the relevant financial year.

Company's Response and Impact Assessment

Century Enka Limited has indicated that it plans to contest the demand raised by the tax authorities. The company has stated in its disclosure that it does not expect the penalty order to have any material financial impact on its operations. The demand notice was received by the company on February 25, 2026.

Regulatory Compliance

The disclosure was made in compliance with regulatory requirements, with the company informing both BSE Limited and the National Stock Exchange of India about the development. The communication was signed by Rahul Dubey, VP-Legal & Company Secretary of Century Enka Limited, ensuring proper corporate governance protocols were followed in the disclosure process.