ISGEC Heavy Engineering has received a penalty order from the Assistant Commissioner/GSTO, Ward 62, Zone 5, Delhi, dated May 15, 2026, pertaining to alleged excess availment of Input Tax Credit for FY 2022-23. The order was received on May 15, 2026, at 14:15:00 HRS, and the disclosure was made pursuant to Regulation 30 read with Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Penalty Order

The Assistant Commissioner, State Tax, levied a total demand of Rs.37,74,378 against the company. The financial impact is broken down across three components — tax demand, penalty, and interest — as detailed in the table below:

Company's Response

Isgec Heavy Engineering has stated that it intends to file an appeal under the Goods and Services Tax Act in response to the order. The company has made this disclosure in compliance with its regulatory obligations under the Listing Regulations. The intimation has also been published on the company's official website at www.Isgec.com .

The disclosure was signed by Kalyan Ghosh, Chief Legal Officer & Compliance Officer (Membership No. A10790), on behalf of Isgec Heavy Engineering Limited, from the company's address at A-4, Sector-24, Noida-201301, Uttar Pradesh.

ISGEC Heavy Engineering has announced the sale of equity shares in its joint venture company, Isgec SFW Boilers Private Limited, resulting in a change in the subsidiary's status. Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company entered into an agreement with Sumitomo SHI FW Energia OY on May 08, 2026, to divest a 25% stake in the joint venture. The disclosure was made in accordance with SEBI Circular No. H0/49/14/14(7)2025-CFDDPOD2/1/3762/2026 dated January 30, 2026, and has also been published on the company's official website.

Transaction Details

The transaction involves the sale of 5,00,000 equity shares, representing 25% of the paid-up capital of Isgec SFW Boilers Private Limited. Currently, ISGEC Heavy Engineering holds 51% and Sumitomo SHI FW Energia OY holds 49% of the joint venture. Following completion of the sale, ISGEC Heavy Engineering's shareholding will reduce to 26%, while Sumitomo SHI FW Energia OY will become the majority stakeholder. The joint venture company will consequently cease to be a subsidiary of ISGEC Heavy Engineering and will be reclassified as an associate company. Notably, the joint venture arrangement between the two partners will continue post-transaction.

Key transaction parameters are summarised below:

Buyer Profile and Transaction Nature

The buyer, Sumitomo SHI FW Energia OY, is the existing joint venture partner and does not belong to the promoter or promoter group of the listed entity. The transaction does not fall under related party transactions and is not classified as a slump sale. The sale is also outside any Scheme of Arrangement, making the related regulatory provisions not applicable.

Financial Impact of the Joint Venture

For the financial year ended March 31, 2025, Isgec SFW Boilers Private Limited contributed the following to the consolidated financial statements of ISGEC Heavy Engineering. The consolidated annual financial statements for the financial year 2025-26 are yet to be finalized and approved by the Board of Directors; hence, data for the financial year ended March 31, 2025, has been disclosed for reference.