Active Clothing Co Limited has secured a significant regulatory milestone with BSE Limited's in-principle approval for its proposed preferential issue of convertible warrants. The approval, received on March 11, 2026, paves the way for the company to raise ₹23 crores through the issuance of securities to select investors.

Warrant Issue Details

The approved issue comprises specific parameters designed to provide flexibility for both the company and investors:

Each convertible warrant provides the holder with the right to apply for and receive one fully paid-up equity share of the company. The conversion can be exercised within 18 months from the date of warrant allotment, offering investors strategic timing flexibility.

Regulatory Compliance Framework

BSE Limited has outlined comprehensive compliance requirements that Active Clothing Co Limited must adhere to throughout the issuance process. The exchange emphasized that the in-principle approval does not constitute automatic listing approval, requiring separate compliance procedures for that stage.

Key regulatory requirements include:

• Strict adherence to Companies Act, 2013 provisions
• Compliance with Securities Contracts (Regulation) Act, 1956
• Following SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
• Meeting SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 standards

Internal Control Measures

The exchange has mandated specific internal control mechanisms to monitor trading activities by proposed allottees. These measures aim to prevent non-compliance with SEBI regulations regarding trading restrictions.

Critical control requirements include:

• Obtaining undertakings from allottees confirming no intra-day trading in company scrip
• Ensuring no sales in company scrip until allotment date
• Company responsibility for verifying compliance with Regulation 167(6) of SEBI ICDR regulations, 2018
• Potential listing impact for any observed non-compliance post-verification

Post-Approval Obligations

Active Clothing Co Limited must complete several post-approval formalities within specified timeframes. The company is required to submit a listing application within twenty days from the allotment date, along with applicable fees as per Regulation 14 of LODR Regulations.

The approval letter, bearing reference number LOD/PREF/SS/FIP/1855/2025-26, was signed by BSE officials Marian Dsouza, Assistant Vice President, and Hetika Chandni, Deputy Manager. BSE reserves the right to withdraw the approval if submitted information proves incomplete, incorrect, or misleading, or if it contravenes applicable regulations and guidelines.

Active Clothing Co . Limited has received a significant GST order from tax authorities covering a five-year period from 2019-20 to 2023-24. The company disclosed this development to BSE on March 3, 2026, following regulatory requirements under SEBI listing obligations.

GST Order Details

The Joint Commissioner, Office of Principal Commissioner, CGST Commissionerate, Ludhiana issued the order on March 2, 2026. The order relates to tax ascertained as being payable under section 74 of the CGST/SGST Act, 2017.

Company's Response and Compliance

Active Clothing Co. has taken proactive steps to address the GST order requirements. The company has already fulfilled a liability of ₹2,36,054 through deposit and reversal mechanisms. Additionally, the balance amount is planned to be deposited and claimed as GST input in the current year.

Penalty Deposit Status

The company has deposited ₹7,04,090 as penalty, representing 25% of the total penalty amount as applicable before the order was uploaded. This demonstrates the company's commitment to regulatory compliance.

Background and Context

This GST order follows an earlier disclosure made by Active Clothing Co. on November 14, 2025, regarding the receipt of a Show Cause Notice issued by Joint Commissioner CGST (Audit), Ludhiana. The current order represents the conclusion of that audit process.

Financial Impact Assessment

According to the company's disclosure, there is no other demand beyond what has been specified in the current order. The company has indicated that the financial impact is manageable, with most obligations already addressed through deposits and planned GST input claims.

The textile manufacturer, based in Punjab with operations in Mohali and Fatehgarh Sahib, continues to maintain transparency with stakeholders through timely regulatory disclosures as required under SEBI listing regulations.