Chalet Hotels Limited has completed the allotment of 2,00,468 fully paid-up equity shares to eligible employees under its CHL Employee Stock Option Plan 2023. The allotment was approved by the company's Compensation, Nomination and Remuneration Committee through a circular resolution passed on January 2, 2026.

Share Allotment Details

The equity shares were allotted at an exercise price of ₹528.00 per share, with a premium of ₹518.00 per share. Each share carries a face value of ₹10.00. The total amount realized through this exercise of options amounts to ₹10,58,47,104.00.

Impact on Share Capital

The allotment has resulted in an increase in the company's paid-up equity share capital. The newly issued shares rank pari-passu with existing equity shares and are identical in all respects to the company's current equity shares.

ESOP 2023 Scheme Overview

The CHL Employee Stock Option Plan 2023 covers a total of 6,60,891 employee stock options, with each option convertible into one equity share. The pricing formula for the scheme is based on the average of two weeks' prices prior to the grant date of September 4, 2023.

Regulatory Compliance

The allotment has been made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The scheme is administered by the Compensation, Nomination and Remuneration Committee, with vesting subject to continued employment and potential performance criteria as specified by the committee.

The shares have been issued in dematerialized form under ISIN INE427F01016, with distinctive numbers ranging from 218753433 to 218953900. No lock-in period applies to these shares, and no additional listing fees are payable for this allotment.

Chalet Hotels Limited has received a significant penalty notice from the Maharashtra GST Department, with a total demand of ₹160.02 crore related to tax compliance issues from FY 2018-19. The company disclosed this development through a regulatory filing on January 1, 2026, pursuant to SEBI listing regulations.

GST Penalty Details

The Maharashtra GST Department issued orders on December 31, 2025, under section 74 of the Goods and Services Tax Act 2017. The penalty breakdown reveals the comprehensive nature of the demand:

Nature of Violations

The GST department's action stems from multiple compliance issues identified during their assessment. The Deputy Commissioner of State Tax, Nariman Point Nodal Division-2, Mumbai, issued the order citing several specific violations:

• Mismatch in Input Tax Credit claimed by the company
• GST liability on uniforms and shoes supplied to employees
• ITC reversal on ineligible and blocked credits related to construction activities
• Excess ITC credit claims beyond permissible limits

These violations collectively pertain to the company's GST filings and claims for the financial year 2018-19, indicating a retrospective assessment by the tax authorities.

Company's Response and Legal Strategy

Chalet Hotels has indicated its intention to challenge the GST department's orders through appropriate legal channels. The company believes the orders are contestable and plans to pursue legal recourse against the imposed penalty and interest demands.

The hospitality company has assured stakeholders that the penalty notice will not impact its day-to-day operations. According to the regulatory filing, there is no significant financial impact anticipated, and business operations continue as usual without disruption.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company provided detailed information as required under the SEBI Master Circular dated November 11, 2024, ensuring transparency with investors and regulatory authorities.

The company secretary and compliance officer, Christabelle Baptista, signed the regulatory filing, confirming the accuracy of the disclosed information and the company's commitment to maintaining transparency with stakeholders regarding material developments.