Grovy India has received board approval for a significant fund raising initiative, with directors giving in-principle consent to raise capital of up to ₹40 crore. This strategic financial decision positions the company to strengthen its capital base and support its operational requirements.

Board Resolution Details

The company's board of directors has formally approved the in-principle fund raising proposal, marking a crucial step in the capital mobilization process. The approved amount provides Grovy India with substantial financial flexibility to pursue its business objectives.

Strategic Implications

The board's decision to approve fund raising of up to ₹40 crore demonstrates the company's commitment to strengthening its financial foundation. This in-principle approval enables Grovy India to explore various funding mechanisms and engage with potential investors or financial institutions.

The fund raising initiative provides the company with enhanced financial capacity to support its business operations and strategic initiatives. With board approval secured, Grovy India can now proceed with the detailed planning and execution of its capital raising strategy.

Grovy India Limited has received an appellate order from the Commissioner of Income Tax (Appeals) that upholds a significant tax demand of ₹119.24 lakhs for Financial Year 2019-20. The company disclosed this development to BSE Limited on January 14, 2026, pursuant to SEBI listing regulations.

Tax Demand Details

The appellate order under Section 250 of the Income-tax Act, 1961 was received by the company on January 13, 2026. The order pertains to the assessment year 2020-21 and upholds the Assessing Officer's original decision.

The tax demand stems from an addition of ₹1.00 crore made by the tax authorities on account of unsecured loans. The appellate order was passed under Section 250 of the Income-tax Act, 1961, in respect of the original assessment order under Section 147 read with Section 144B.

Company's Response and Legal Position

Grovy India Limited has indicated that it is examining the appellate order in consultation with its legal and tax advisors. The company plans to take appropriate legal recourse against the order within the prescribed time limits.

Key aspects of the company's position include:

• Belief that the demand lacks legal justification
• Expectation that the order will be set aside based on expert opinion
• No anticipated material adverse impact on financials or operations
• Commitment to pursuing appropriate legal remedies

Regulatory Compliance

The disclosure was made in continuation of earlier communications dated February 27, 2025, and March 21, 2025, regarding the original assessment order and subsequent appeal filing. The company has provided comprehensive details as required under Regulation 30 of SEBI listing regulations and the SEBI Master Circular dated November 11, 2024.

Background and Timeline

This development represents the latest stage in an ongoing tax dispute that began with the original assessment for FY 2019-20. The company had previously filed an appeal against the initial assessment order, which has now been decided by the Commissioner of Income Tax (Appeals), Delhi.

The company maintains that it will continue to defend its position through appropriate legal channels while ensuring full compliance with regulatory disclosure requirements.