JSW Dulux Limited received a GST audit order from the Telangana GST Department on August 24, 2026, disallowing input tax credit (ITC) for the period from April 2022 to March 2023. The order, issued under Section 73 of the CGST Act, 2017, demands a total payment of ₹84.75 lakh, comprising tax and penalty components.

The notification was issued by the Assistant Commissioner at Allwyn, Telangana GST Department, and dated August 5, 2026. The company disclosed the litigation pendency under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Breakdown of Liability

The total liability stems from the disallowance of ITC claims made during the specified financial year. The department has not charged any interest on the disputed amount.

Management Response

JSW Dulux stated that the order is open for further submissions before the relevant authorities. The company is currently in the process of responding to the notice within the stipulated timeframe mentioned in the order. No immediate financial provision has been disclosed beyond the potential liability amount.

JSW Dulux has issued a postal ballot notice dated August 11, 2026, seeking shareholder approval to subdivide its equity shares in a 1:10 ratio. The corporate action aims to improve market liquidity and broaden the retail investor base.

The company’s Board of Directors approved the proposal at its meeting on August 11, 2026. Shareholders holding shares as on the cut-off date of August 7, 2026, are eligible to vote. The remote e-voting period runs from August 22, 2026, at 9:00 am to September 20, 2026, at 5:00 pm.

Capital Structure Changes

The proposed split will reduce the face value of each equity share from ₹10 to ₹1. Consequently, the number of authorized and issued shares will increase tenfold, while the total equity share capital remains unchanged.

Governance and Compliance

The resolutions require amendments to the Memorandum of Association and Articles of Association to reflect the new capital clause. Item 1 and Item 2 are Ordinary Resolutions, while Item 3 is a Special Resolution.

In compliance with SEBI Listing Regulations, shares held in physical mode will be converted to demat form. The company will issue Letters of Confirmation for physical holders, who must dematerialize the shares within 120 days. Demat holders will receive the sub-divided shares directly in their accounts.

What the Numbers Show

The arithmetic adjustment maintains the existing promoter and public shareholding percentages. With no change in the total equity capital of ₹45,54,03,140, the split serves purely as a mechanism to lower the nominal entry price for investors, potentially increasing trading volume without altering the company’s market capitalization or ownership structure.