HEG Limited has announced that the GST authority has dropped the show cause notice for FY 2019-20, providing significant relief to the company from potential penalty proceedings. The development was communicated to the stock exchanges on March 17, 2026, under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements.

Background of the GST Proceedings

The company had previously informed the exchanges on November 10, 2025, about receiving show cause notices from the Office of the Deputy Commissioner (SGST) Mandideep Circle, Bhopal Division-2. These notices covered tax periods FY 2019-20 and FY 2020-21, with each period involving proposed recovery of IGST refunds along with penalty amounting to Rs. 282.34 crores.

Details of the Relief Granted

The GST authority has now dropped the proceedings for FY 2019-20 based on information available on their records. The following table summarizes the key details of this development:

Current Status and Impact

The company has confirmed that there is no financial impact from this development, as the show cause notice for FY 2019-20 has been completely dropped. The proceedings under Section 74 of MPGST Act 2017 read with Section 74 of CGST Act 2017 were terminated based on the authority's review of available records.

It's important to note that while the FY 2019-20 matter has been resolved favorably, the status of the show cause notice for FY 2020-21, which also involves a potential penalty of Rs. 282.34 crores, remains unchanged as per this disclosure.

Regulatory Compliance

HEG Limited has fulfilled its disclosure obligations under Regulation 30 of SEBI's LODR by promptly informing both BSE and NSE about this development. The company has also made this information available on its website at www.hegltd.com for stakeholder access.

This positive development eliminates a significant contingent liability for HEG Limited, providing clarity on the FY 2019-20 GST matter and potentially improving the company's financial outlook by removing the uncertainty associated with this particular tax proceeding.

HEG Limited has received a formal disclosure from Redrose Vanijya LLP under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. The promoter group entity acquired 1,05,000 equity shares through open market transactions, demonstrating continued confidence in the graphite electrode manufacturer.

Transaction Overview

The acquisition executed by Redrose Vanijya LLP represents a strategic increase in the promoter group's stake:

Shareholding Changes

The formal SEBI disclosure reveals the precise impact of the acquisition on Redrose Vanijya LLP's ownership in HEG Limited:

Company Capital Structure

HEG Limited's equity structure remains unchanged following the transaction:

Entity and Regulatory Details

Redrose Vanijya LLP operates as a Limited Liability Partnership with LLPIN ACL-8811, registered at Bhilwara Bhawan, 40-41 Community Centre, New Friends Colony, New Delhi-110025. The entity filed the mandatory disclosure on March 13, 2026, signed by Designated Partner Riju Jhunjhunwala (DPIN: 00061060), ensuring full compliance with SEBI takeover regulations.

The disclosure was simultaneously submitted to both BSE Limited and National Stock Exchange of India Limited, along with a copy to HEG Limited's Company Secretary, maintaining transparency in promoter group transactions as required under securities regulations.