Saurashtra Cement Limited has received a show cause notice of ₹3.83 crore from Gujarat GST authorities regarding tax discrepancies for FY23. This follows an earlier ₹2.07 crore demand issued by Mumbai officials in September 2026.

The new notice was issued on September 29, 2026, by the Office of the Deputy Commissioner of State Tax, Range-24, Jamnagar, under Section 73 of the CGST Act, 2017 and the Gujarat GST Act, 2017. The demand pertains to short payment of GST on B2C outward supplies, excess ITC claims, and ineligible credits for construction and capitalised immovable property during FY23.

Regulatory Demand Details

The total quantum of the new claim stands at ₹3,83,41,188 (Rupees Three Crore Eighty-Three Lakhs Forty-One Thousand One Hundred Eighty-Eight Only), inclusive of interest and penalty. A hearing is scheduled for October 29, 2026.

This new disclosure complements the earlier show cause notice received on September 25, 2026, from Mumbai GST authorities amounting to ₹2.07 crore. That earlier demand also related to excess Input Tax Credit (ITC) claims in GSTR-3B/9 filings for FY23 and required a response by October 23, 2026.

Company Response and Financial Impact

Saurashtra Cement stated that it assesses both demands as not maintainable. The company is currently evaluating the matters and will submit its replies within the prescribed time periods. Management indicated that it does not envisage any relevant impact on the financials, operations, or other activities of the company arising from these notices.

The disclosures were made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III, ensuring transparency regarding material litigations and disputes.

What the Numbers Show

The combined regulatory exposure for FY23 now totals approximately ₹5.90 crore, comprising the ₹3.83 crore Jamnagar demand and the ₹2.07 crore Mumbai demand. While the Jamnagar notice cites broader discrepancies including short payments on B2C supplies and ineligible ITC on motor vehicles, the Mumbai notice focused specifically on excess ITC claims in GSTR-3B/9 filings. The company maintains that neither demand impacts its financial position or operational continuity.

Saurashtra Cement Limited disclosed that Mehta Family Trust indirectly acquired 9.46% of the company's voting rights through Omna Enterprises LLP on September 24, 2026. This transaction follows a recent similar acquisition via Galaxy Technologies Private Limited, marking a continued consolidation of indirect promoter interests within the Mehta family structure.

The acquisition occurred upon the trust's admission as a partner in Omna Enterprises LLP with a 50.04% profit sharing ratio. Consequently, the trust gained indirect voting rights corresponding to the 1,05,22,431 equity shares held by Omna in Saurashtra Cement. The registered ownership of these shares remains with Omna, ensuring no change in the public or promoter shareholding patterns.

Regulatory Compliance and Exemption

This disclosure was made under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and Regulation 7(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015. The transaction relied on an exemption granted by SEBI via an order dated July 14, 2026 (Reference No. WTM/KCV/CFD/06/2026-27). The regulatory clearance confirms that this move constitutes an internal reorganization within the Mehta family and does not result in any change in control or management of the target company.

Mr. Jay Mahendra Mehta, Trustee of the Mehta Family Trust, signed the disclosure on September 29, 2026. The filing highlights that while beneficial interest shifted to the trust, the aggregate promoter and promoter group shareholding remains unaffected.

Impact on Shareholding Structure

The new disclosure adds to the existing picture of promoter consolidation. Previously, the trust had acquired 14.57% voting rights via Galaxy Technologies Private Limited on September 22, 2026. With this latest addition, the trust's total indirect voting rights now encompass blocks held by both Galaxy Technologies and Omna Enterprises LLP.

What the Numbers Show

The combined data reveals a systematic consolidation of indirect interests across multiple promoter entities without altering the company's capital structure. Before these transactions, the trust held only 100 equity shares directly. Post-acquisition, the trust holds indirect voting rights over 1,62,15,400 shares via Galaxy Technologies and 1,05,22,431 shares via Omna Enterprises LLP.

Crucially, the total equity share capital of Saurashtra Cement remains unchanged at ₹1,11,28,72,800, consisting of 11,12,87,280 equity shares of ₹10 each. The aggregate promoter and promoter group shareholding remains unaffected, indicating that these moves are purely structural adjustments within the promoter group rather than changes in external ownership dynamics.