Zydus Wellness Limited has issued a clarification to BSE Limited regarding significant volume movement in its equity shares, responding to a surveillance inquiry dated April 7, 2026. The company addressed concerns about increased trading activity across exchanges in recent periods.

Regulatory Compliance and Disclosure Status

In its response to BSE surveillance reference number L/SURV/ONL/PV/SG/2026-2027/11, Zydus Wellness confirmed that it has made all necessary disclosures under regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The company emphasized that there are no undisclosed events or information, including any impending announcements, that could influence the price or volume behavior of its equity shares.

Company's Position on Volume Movement

Zydus Wellness attributed the significant increase in trading volumes to market-driven factors, stating that the company has neither control over nor knowledge of the specific reasons behind this movement. The wellness company maintained that such volume fluctuations are purely market-driven phenomena.

Ongoing Compliance Commitment

The company reaffirmed its commitment to regulatory compliance, stating that it will continue to make necessary disclosures of events and information in accordance with regulation 30 of the Listing Regulations. This response demonstrates Zydus Wellness's adherence to transparency requirements and proactive communication with regulatory authorities.

The clarification was signed by Nandish P. Joshi, Company Secretary and Compliance Officer, and submitted to BSE surveillance for record purposes.

Zydus Wellness Limited has disclosed that its step-down wholly owned subsidiary, Comfort Click Limited (CCL), United Kingdom, has received a penalty order from the Spanish Tax Authority under regulatory compliance requirements.

Penalty Details and Background

The Spanish Tax Authority has imposed a VAT penalty on Comfort Click Limited for alleged unpaid value added tax related to the first quarter of 2021. The penalty stems from what the authority describes as incorrect mapping of VAT payment to old VAT instead of new VAT.

Company Response and Legal Strategy

Comfort Click Limited has expressed confidence in its position regarding the penalty. The subsidiary firmly believes it has strong merits to contest the Spanish Tax Authority's order and intends to file an appeal against the decision.

Regulatory Disclosure

Zydus Wellness has made this disclosure pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with relevant SEBI circulars. The company has indicated that there is no impact on financial, operational, or other activities of the company or CCL due to this order, with any impact limited to the final tax liability as may be determined along with penalty, if any.

Business Implications

This development highlights the regulatory complexities that Indian companies and their international subsidiaries face when operating across multiple jurisdictions. The VAT penalty represents a compliance matter that the subsidiary will address through appropriate legal channels while maintaining its operational activities.