Refex Industries Limited has allotted 20,057 equity shares of ₹2 each pursuant to the exercise of vested Employee Stock Options under the Refex Employee Stock Option Scheme 2021. The allotment was approved by the Nomination and Remuneration Committee of the company through a resolution passed by circulation on Friday, May 1, 2026.

Following this allotment, the issued, subscribed, and paid-up equity share capital of the company has increased from ₹27,43,98,782, divided into 13,71,99,391 equity shares of ₹2 each, to ₹27,44,38,896, divided into 13,72,19,448 equity shares of ₹2 each. The shares were allotted in dematerialized form and rank pari-passu with the existing equity shares of the company.

Key Details of ESOP Allotment

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The total number of shares covered under the Refex Employee Stock Option Scheme 2021 is 1,00,00,000 equity shares of ₹2 each. The present disclosure relates specifically to the allotment of 20,057 equity shares made on May 1, 2026.

Financial Summary of ESOP Exercise

Exercise Price and Premium Details

The exercise price varied across different tranches of Time-based Options (TBOs). For Tranche I and II, comprising 19,279 equity shares, the exercise price was ₹20.40 per equity share with a premium of ₹18.40 per share. For Tranche III, comprising 778 equity shares, the exercise price was ₹95.00 per equity share with a premium of ₹93.00 per share. Vested options can be exercised within a period of 10 years from the date of relevant vesting, with special provisions for death or permanent incapacity of grantees.

Refex Industries Limited has secured a major legal victory with the Hon'ble Madras High Court quashing an Income Tax demand of ₹3,567.22 lakh for Assessment Year 2016-17. The company received the court order on April 28, 2026, which has nullified the entire tax demand and provided significant financial relief.

Background of the Tax Dispute

The controversy originated from an assessment order dated May 31, 2023, issued by the Deputy Commissioner of Income Tax - Central Circle 3(4), Chennai. The assessment pertained to AY 2016-17 and involved a substantial demand of ₹3,567.22 lakh against the company.

Legal Challenge and Court Proceedings

Refex Industries filed a writ petition before the Hon'ble Madras High Court challenging the assessment order on substantial procedural grounds. The company's legal challenge was based on two primary arguments that the assessment order was passed without providing reasonable opportunity of being heard as mandated under Section 144A of the Income Tax Act, 1961, and no appropriate approval was obtained for issuing the notice.

These procedural lapses formed the cornerstone of the company's legal strategy in challenging the tax demand, highlighting significant violations in the assessment process.

Court's Decision and Financial Impact

After considering the submissions made by both parties, the Hon'ble Madras High Court ruled in favor of Refex Industries and set aside the assessment order passed by the Assessing Officer. The court's comprehensive decision addressed the procedural violations cited by the company, resulting in the complete nullification of the tax demand.

Regulatory Compliance and Disclosure

The company has disclosed this development under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made in compliance with SEBI Master Circular bearing reference no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Company Secretary and Compliance Officer Ankit Poddar signed the official disclosure on behalf of Refex Industries Limited, confirming that the tax demand of approximately ₹3,567.22 lakh stands nullified following the favorable court order.

This favorable court ruling represents a significant legal and financial victory for Refex Industries, eliminating a substantial tax liability and validating the company's position on the procedural aspects of the assessment process.