Sapphire Foods India Limited has received a show cause notice from the office of the Assistant Commissioner (ST), Koyambedu Assessment Circle, Chennai, alleging the availment of excess input tax credit. The authorities have issued a cumulative demand of INR 977.06 million under the Tamil Nadu SGST Act 2017 for the periods April 2022 to March 2023 and April 2023 to March 2024. The company stated that the claim made by the authority is not maintainable and that there is no material impact on its financial or operational activities due to the issuance of this notice.

The show cause notices were issued under Section 73 of the Tamil Nadu SGST Act 2017 vide DRC-01 dated May 26, 2026. The company received both notices on May 26, 2026. The authorities alleged that the company availed excess input tax credit as compared with GSTR-2B.

Details of the Demand

The following table outlines the key details of the regulatory action:

Sapphire Foods is currently evaluating the notice and stated that it shall take necessary steps to respond to the authorities. The disclosure was made to the exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

sapphire foods India Ltd. witnessed a notable block trade on the National Stock Exchange (NSE), with approximately 1,008,468 shares changing hands at a price of ₹176.11 per share, amounting to a total deal value of ₹17.76 crores.

Block Trade Details

The transaction reflects significant secondary market activity in the stock. The key parameters of the block trade are summarised below:

Block trades are typically executed by institutional investors or large market participants outside the regular order book, allowing for the transfer of a substantial number of shares at a negotiated price. The execution of this trade on the NSE underscores active institutional interest in Sapphire Foods India Ltd.'s stock.