CM Airtime Promotion LLP has announced the acquisition of 220,000 equity shares in Chambal Fertilisers & Chemicals Ltd through open market purchase. The transaction was completed on March 4, 2026, and disclosed under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011.

Transaction Details

The acquisition represents a strategic increase in the LLP's shareholding in the fertilizer company. The purchase was executed through open market operations, demonstrating continued confidence in the company's prospects.

Shareholding Pattern Changes

The acquisition resulted in a notable increase in CM Airtime Promotion LLP's stake in Chambal Fertilisers & Chemicals Ltd. The LLP's total shareholding increased from 1,649,830 shares to 1,869,830 shares.

Company Information

Chambal Fertilisers & Chemicals Ltd maintains its equity share capital at Rs 4,00,65,22,970, comprising 400,652,297 equity shares. The company's shares are listed on both BSE Limited and National Stock Exchange of India Limited.

Regulatory Compliance

The disclosure was made in compliance with Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. CM Airtime Promotion LLP, registered with LLP Identification Number AAE-6579, has its registered office at Mezzanine Floor, Hindustan Times House, 18-20, Kasturba Gandhi Marg, New Delhi-110001.

The acquisition reflects the promoter group's continued investment in the company, with the transaction being conducted transparently through established market mechanisms and proper regulatory disclosure procedures.

Chambal Fertilisers & Chemicals Limited has received an Income Tax penalty order of Rs 58,27,971 from the Assessment Unit of the Income Tax Department, as disclosed in a regulatory filing on February 26, 2026. The penalty was imposed under Section 270A of the Income Tax Act, 1961, for an alleged violation related to education cess deduction claims.

Penalty Details and Timeline

The company received the penalty order on February 25, 2026, which pertains to Assessment Year 2017-18. The penalty stems from what the Income Tax Department considers a wrong claim of deduction for education cess in the company's income tax return.

Background of the Violation

The penalty relates to the company's claim for deduction of Education Cess and Secondary & Higher Education Cess. Chambal Fertilisers had initially claimed this deduction based on a favorable decision from the Hon'ble Rajasthan High Court, Jaipur Bench, in the company's own case (Appeal No. 52/2018 for AY 2009–10, order dated July 31, 2018).

The High Court had ruled that education cess paid along with income tax does not fall within the ambit of "tax" under Section 40(a)(ii) of the Income Tax Act, 1961, and therefore was allowable as a deduction. However, the Finance Act, 2022 introduced a retrospective amendment that reversed this ruling.

Company's Response and Impact

Following the retrospective amendment, Chambal Fertilisers surrendered its claim for deduction of Education Cess and Secondary & Higher Education Cess and paid the applicable tax. The company has stated that there is no impact on its financial, operational, or other activities, except for the penalty amount mentioned.

Legal Challenge Planned

The company believes it has a strong case to contest the penalty order on merits and has announced its intention to challenge the order at the appropriate appellate forum. This indicates the company's confidence in its legal position despite the retrospective legislative changes.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding material developments affecting the company.