Indian Metals & Ferro Alloys Limited has settled a regulatory compliance matter with the Ministry of Corporate Affairs by paying a compounding fee of ₹23.00 lakh. The company received an order dated December 27, 2025, from the Regional Director, Eastern Region, Ministry of Corporate Affairs, imposing the fee on the company and its current and former Key Managerial Persons (KMPs).

Regulatory Order Details

The compounding fee has been levied under section 441 read with section 134 of the Companies Act 2013 for violations during FY 2018-19 and FY 2019-20. The order follows a hearing conducted on December 16, 2025, by the Regional Director regarding compounding offences under the Companies Act.

Nature of Violations

The company faced two specific disclosure violations during the mentioned financial years:

• Income Recognition Disclosure: The company failed to provide disclosures regarding non-recognition of income from interest on unsecured loan given to the subsidiary in the Directors' Report for FY 2018-19 and FY 2019-20.

• Related Party Transaction Disclosure: No disclosures were given regarding particulars of contracts or arrangements with related parties referred to in section 188(1) along with the justification for entering into such contract or arrangement in Form AOC-2 in the Directors' Report for the same financial years.

Company's Proactive Approach

Indian Metals & Ferro Alloys had voluntarily filed a compounding application before the Registrar of Companies, Cuttack under Section 441 of the Companies Act, 2013 on June 27, 2024. This voluntary filing demonstrates the company's proactive approach to addressing regulatory compliance matters.

Financial Impact Assessment

According to the company's disclosure, there is no material impact on financial, operational or other activities from these orders. The company has already made the payment to the relevant authority as required under the order.

The matter has been communicated to both the National Stock Exchange of India Limited and BSE Limited for record purposes, ensuring transparency with all stakeholders regarding this regulatory compliance update.

Indian Metals & Ferro Alloys Limited (IMFA) has strengthened its position in the renewable energy sector by acquiring a significant stake in JSW Renew Energy Twelve Limited (JRETL). This strategic move comes as part of a share subscription agreement between the two companies.

Key Details of the Transaction

Transaction Insights

The allotment represents the first tranche of shares as per the Share Subscription and Shareholders Agreement between IMFA and JRETL. This strategic investment aligns with the growing trend of traditional metal and mining companies diversifying into the renewable energy sector.

Implications for IMFA

This acquisition marks a significant step for Indian Metals & Ferro Alloys Limited:

1. Diversification: The stake in JSW Renew Energy Twelve Limited allows IMFA to expand its portfolio beyond its core metals and ferro alloys business.
2. Green Energy Focus: The investment demonstrates IMFA's commitment to participating in India's growing renewable energy market.
3. Strategic Partnership: The 26% stake suggests a substantial strategic interest, potentially allowing IMFA to have a say in JRETL's future direction.

Market Perspective

While the immediate financial impact of this transaction on IMFA's balance sheet may be limited, it represents a strategic long-term investment. The renewable energy sector in India has been witnessing significant growth and attention from both domestic and international investors.

As the energy landscape continues to evolve, partnerships between traditional industrial players and renewable energy companies are becoming increasingly common. This collaboration between IMFA and JSW Renew Energy Twelve Limited could pave the way for future synergies and growth opportunities in the green energy space.

Investors and market watchers will likely keep a close eye on how this partnership develops and whether it leads to further investments or collaborations in the renewable energy sector.