Aditya Birla Fashion & Retail Limited has received a customs demand order totaling ₹217.00 lakhs from the Office of Commissioner of Customs (NS-III), JNCH, Nhava Sheva, relating to disputes over IGST rates on imports. The company disclosed this development to stock exchanges on January 21, 2026, pursuant to SEBI listing regulations.

Customs Demand Breakdown

The demand order, issued on January 8, 2026, and received by the company on January 19, 2026, comprises multiple components:

Demerger Impact on Liability

A significant portion of the demand relates to the demerged entity. The breakdown shows:

This means ₹186.00 lakhs of the total ₹217.00 lakhs demand pertains to business operations that were transferred to Aditya Birla Lifestyle Brands Limited through the scheme of arrangement.

Nature of Dispute

The customs demand order emerged from Show Cause Notice (SCN) proceedings, with the primary dispute centering on the rate of Integrated Goods and Services Tax (IGST) applied to the company's imports. The Office of Commissioner of Customs concluded these proceedings by issuing the demand order numbered 349/2025-26/Commr./NS-III/CAC/JNCH.

Company's Response Strategy

The company has indicated its intention to challenge the customs order through appropriate legal channels. Management stated they are evaluating the order and plan to litigate the matter at the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) level.

Disclosure Timeline

The company acknowledged an unintentional delay in disclosure, explaining that the matter was reported swiftly once it came to the attention of appropriate company executives. The disclosure was made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

An investor in Aditya Birla Fashion And Retail is set to divest a significant portion of their holdings through a block deal transaction. The planned sale involves up to 3% of the company's total stake, representing a substantial divestment in the fashion retail major.

Transaction Details

The block deal has been structured with specific parameters to attract institutional buyers:

Pricing Strategy

The shares are being offered at ₹65.78 per share, which represents an 8.5% discount to the current market price. This discount pricing is a common strategy in block deals to ensure quick execution and attract institutional interest. The discounted pricing mechanism helps facilitate large-volume transactions without significantly impacting the stock's regular trading price.

Block Deal Mechanism

Block deals are executed outside the regular trading window and are typically used for large transactions involving institutional investors. This mechanism allows for the transfer of significant stake portions without causing immediate volatility in the stock's market price. The $32 million transaction value indicates the substantial nature of this divestment.

Market Implications

The planned stake sale reflects typical portfolio rebalancing activities by institutional investors. The 3% stake represents a meaningful portion of the company's equity, and the successful execution of this block deal will depend on institutional appetite at the offered discount price.