Fermenta Biotech Limited has received a significant GST order from the Central Goods & Services Tax - Mandi Division, demanding a total amount of ₹2.71 crores including taxes, penalties, and interest. The company disclosed this development through a regulatory filing on December 31, 2025, pursuant to Regulation 30 of SEBI Listing Regulations.

GST Order Details

The order numbered 09/GST/AC/CGST-SML/DIV-MANDI/2024-25 was issued by the Office of The Deputy/Assistant Commissioner, Central Goods & Service Tax, Mandi Division. The comprehensive demand structure includes multiple components under various GST legislations.

Nature of Alleged Violation

The GST demand has been raised due to alleged contravention of Rule 96(10) of the Central Goods and Services Rules, 2017. The order was issued under Section 74 of the Central Goods and Services Tax Act, 2017, read with corresponding provisions of the Himachal Pradesh Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017.

This regulatory action follows the company's earlier intimation dated April 17, 2025, indicating that this matter has been under consideration by the tax authorities for several months.

Company's Response Strategy

Fermenta Biotech has indicated that it is currently examining the order in detail and will file an appropriate response highlighting the company's contentions with the appropriate authority within the prescribed time limit. The company plans to seek legal advice before formulating its response strategy.

Financial Impact Assessment

Despite the substantial monetary demand, the company has stated that it does not foresee any material impact on its financial, operational, or other activities due to the demand, interest, and penalty. This assessment suggests the company may have grounds to contest the order or has adequate financial resources to manage the situation.

The company's regulatory filing demonstrates compliance with disclosure requirements while indicating confidence in its position regarding the GST matter. The final resolution will depend on the company's response and subsequent proceedings with the tax authorities.

Fermenta Biotech has announced that its Board of Directors approved a significant fundraising proposal during a meeting held on December 10, 2025. The company plans to raise funds up to ₹150.00 crores through various financial instruments, marking a strategic move to strengthen its capital base.

Fundraising Structure and Securities

The board has approved raising funds through multiple types of securities to provide flexibility in execution. The comprehensive approach includes various financial instruments designed to meet different investor preferences and market conditions.

Issuance Methods and Flexibility

The company has structured the fundraising to utilize multiple issuance methods, providing operational flexibility based on market conditions and regulatory requirements. The board has approved various modes of fund raising to ensure optimal execution.

Regulatory Disclosure and Compliance

As per the detailed disclosure under Regulation 30 of SEBI Listing Regulations, the company has provided comprehensive information regarding the fundraising proposal. The securities may be issued in one or more tranches through any combination of approved methods, subject to applicable laws and regulatory compliance.

Board Meeting Details

The board meeting was conducted on December 10, 2025, with specific timing details recorded for regulatory compliance. The meeting commenced at 11:30 a.m. IST and concluded at 2:50 p.m. IST, indicating comprehensive deliberations on the fundraising proposal.

The company has indicated this decision continues from an earlier intimation dated December 7, 2025, suggesting ongoing strategic planning and board deliberations. The proposal requires necessary regulatory and statutory approvals as required under applicable laws, along with shareholder approval that will be sought separately at an appropriate time.