IIFL Capital Services Limited has informed stock exchanges about significant tax demand orders issued by the Income Tax Authority against two of its wholly owned subsidiaries, totaling ₹56.28 crore including surcharge and cess.

Tax Demand Details

The Joint Commissioner of Income Tax (OSD), Central Circle – 4(4), Mumbai issued assessment orders dated April 22, 2026, under Section 158BC(1)(c) of the Income Tax Act, 1961. The demands cover an extended block period from April 01, 2018 to February 03, 2025.

Company's Response and Position

IIFL Capital Services has stated that both subsidiary companies believe they have duly discharged all their tax liabilities as applicable. The company emphasized that the subsidiaries have adequate factual and legal grounds to substantiate their position regarding the tax matters.

Expected Financial Impact

The company has indicated that it does not expect any material impact on the financials or operations of the subsidiaries due to these tax demand orders. IIFL Capital Services is currently evaluating various options and will pursue appeals against the orders under applicable laws.

Regulatory Compliance

The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with the SEBI Master Circular dated January 30, 2026. This follows the company's earlier intimation dated January 29, 2025, indicating ongoing tax-related matters.

Next Steps

The company plans to challenge the tax demands through the appropriate legal channels, confident in its position that all tax obligations have been properly fulfilled. The assessment orders represent a significant development that the company is addressing through its legal and tax advisory teams.

IIFL Capital Services has officially denied media reports suggesting that Canadian investment firm Fairfax was in advanced negotiations to acquire a nearly 10% stake in the company. The company has clarified that it has no undisclosed exchange information regarding any such transaction.

Company's Official Response

The financial services firm issued a statement refuting earlier reports that claimed Fairfax was in final stages of negotiations for a stake acquisition through preferential allotment. The company emphasized that it maintains transparency with stock exchanges and has no material information that remains undisclosed.

Background of Initial Reports

Earlier reports had suggested that the proposed acquisition would be executed through a preferential allotment mechanism, which allows companies to issue shares to specific investors at predetermined prices. Such transactions typically trigger mandatory open offer requirements under Indian securities regulations when ownership thresholds are crossed.

Market Implications

The company's denial brings clarity to the market regarding the speculation around potential strategic investment. IIFL Capital's prompt response demonstrates its commitment to maintaining transparent communication with stakeholders and ensuring accurate information flow to the market.

Regulatory Compliance

By issuing this clarification, IIFL Capital has fulfilled its obligation to address market speculation and maintain transparency with stock exchanges. The company's statement reinforces that all material developments are disclosed in accordance with regulatory requirements.