Active Clothing Co Limited has successfully completed the allotment of its convertible warrants following BSE Limited's in-principle approval received on March 11, 2026. The company's Issue Committee approved the allotment of 20,00,000 convertible warrants on March 18, 2026, marking the completion of its ₹23 crore preferential issue.

Warrant Allotment Completion

The Issue Committee meeting held on March 18, 2026, formally approved the allotment of warrants to both promoters and non-promoter investors. The company has received an upfront payment of ₹5.75 crores, representing 25% of the total issue value.

Investor Distribution and Shareholding Impact

The warrant allotment includes six investors across promoter and non-promoter categories. The distribution demonstrates a balanced approach between existing promoters strengthening their position and new investors joining the company.

Regulatory Framework and Compliance

The allotment follows comprehensive regulatory approvals including Board of Directors' approval on January 27, 2026, and shareholders' approval at the Extra-Ordinary General Meeting held on February 26, 2026. BSE Limited's in-principle approval was secured on March 11, 2026, enabling the completion of the allotment process.

Key compliance requirements include adherence to Companies Act 2013, Securities Contracts (Regulation) Act 1956, and SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018. The company must ensure strict monitoring of trading activities by allottees and prevent any non-compliance with SEBI regulations regarding trading restrictions.

Conversion Terms and Future Obligations

Each warrant provides the right to convert into one fully paid-up equity share upon payment of the balance ₹86.25 per warrant within 18 months from the allotment date. Unexercised warrants will lapse after this period, with the upfront payment being forfeited by the company. The company must submit a listing application within twenty days from the allotment date along with applicable fees as per LODR Regulations.

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.