Krsnaa Diagnostics Limited received an income tax rectification order dated August 14, 2026, increasing its tax demand for Assessment Year 2022-23 by ₹12.10 crore. The Assistant Commissioner of Income Tax, Central Circle 2(1), Pune, issued the order under Section 154 read with Section 143(3) of the Income Tax Act, 1961.

The rectification applies the 60% tax rate plus a 25% surcharge under Section 115BBE to additions made in the original assessment order dated March 31, 2024. This adjustment raises the total balance payable to ₹31.73 crore, up from the previously disclosed amount of ₹19.63 crore.

Regulatory Context

The company had earlier informed exchanges about the original assessment order via intimation letter KDL/SE/007/2026-27 dated May 20, 2026. An appeal against that original order is already pending before the appropriate appellate authority.

The current rectification specifically addresses the tax computation methodology rather than altering the assessed income figure, which remains unchanged at ₹98.27 crore. The additions triggering the higher tax rate were made under Sections 69A and 69C of the Income Tax Act.

What the Numbers Show

The differential demand of ₹12.10 crore represents a 61.6% increase over the previous payable amount of ₹19.63 crore. This sharp rise stems entirely from the change in applicable tax rate from standard corporate rates to the punitive 60% rate under Section 115BBE, which applies when undisclosed income is added to total income. The underlying assessed income base of ₹98.27 crore remained constant, indicating the dispute centers on tax classification rather than revenue recognition.

Next Steps

Krsnaa Diagnostics stated it is filing an appeal or rectification against this differential demand before the relevant appellate authority. The company will continue to update exchanges on material developments regarding these proceedings.

Krsnaa Diagnostics Limited has issued a notice of postal ballot to seek shareholder approval for a preferential issue of warrants convertible into equity shares. The company aims to raise up to ₹91.75 crore by issuing up to 16.21 lakh warrants to its promoter and promoter group at a price of ₹566 per warrant.

The specific allottees have been identified as Mr. Rajendra Mutha and Krsnaa Diagnostics (Mumbai) Private Limited. Mr. Rajendra Mutha is allotted 75,000 warrants worth ₹4.25 crore, while Krsnaa Diagnostics (Mumbai) Private Limited receives 15.46 lakh warrants worth ₹87.50 crore. This transaction falls under Section 62(1)(c) read with Section 42 of the Companies Act, 2013 and Chapter V of the SEBI (ICDR) Regulations, 2018.

The company published advertisements in Financial Express (English) and Loksatta (Marathi) on August 19, 2026, to inform members about the special resolution. The e-voting period for the resolution commences at 9:00 am on August 19, 2026, and concludes at 5:00 pm on September 17, 2026. Shareholders holding securities as on the cut-off date of August 14, 2026, are eligible to vote via the National Securities Depository Limited (NSDL) platform. Mr. Dinesh Birla, a practicing company secretary, has been appointed as the scrutinizer for the process.

Issue Structure and Pricing

The warrants will be issued in dematerialized form and carry an entitlement to subscribe to one fully paid-up equity share of face value ₹5 each upon exercise. The exercise price is fixed at ₹566 per equity share, which includes a premium of ₹561. This pricing aligns with Regulation 164 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, based on the volume-weighted average price (VWAP) of the preceding 90 trading days.

Payment terms require the allottees to pay 25% of the issue price (₹22.94 crore) at the time of subscription and allotment. The remaining 75% (₹68.81 crore) is payable upon exercise of the warrants. If the warrants are not exercised within 18 months from the date of allotment, they will lapse, and the subscription amount paid will be forfeited by the company.

Utilization of Proceeds

The company has outlined specific objects for the utilization of funds raised through this preferential issue:

• Capital Expenditure: An amount of ₹68.81 crore is allocated for purchasing and installing diagnostic equipment, including CT scanners, MRI machines, and PET CTs. This expenditure supports both existing operations and upcoming projects.
• Acquisitions: Approximately ₹22.94 crore is earmarked for funding business acquisitions as identified and evaluated by management, subject to board approval.

Since the total issue size does not exceed ₹100 crore, the appointment of a monitoring agency under Regulation 162A of the SEBI ICDR Regulations is not required.

Impact on Shareholding Pattern

The proposed allotment will increase the aggregate shareholding of the promoter and promoter group from 27.11% to 30.58% on a fully diluted basis, assuming full exercise of the warrants.

Prior to the issue, Mr. Rajendra Mutha held 24.75% and Krsnaa Diagnostics (Mumbai) Private Limited held 2.36%. Post-allotment, assuming full subscription, their holdings will stand at 23.79% and 6.78% respectively. This transaction does not result in a change in control or management of the company. Furthermore, the increase in promoter holding falls within the limits permitted under Regulation 3(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, thereby exempting the company from making an open offer.

The allotment is expected to be completed within 15 days of passing the special resolution, subject to regulatory approvals. The warrants and resultant equity shares will be subject to lock-in periods as per Regulation 167 of the SEBI ICDR Regulations.