J.B. Chemicals Board Approves ₹18 Crore Additional Investment in Dubai Subsidiary

J B Chemicals and Pharmaceuticals Ltd. has announced that its board of directors approved an additional investment of up to ₹18.00 crores in its wholly-owned Dubai subsidiary during a meeting held on January 7, 2026. The investment will strengthen the operational capabilities of Unique Pharmaceutical Laboratories, FZE, which operates in the medicines trading business.

Investment Details

The board meeting, which commenced at 2:22 PM and concluded at 2:40 PM on January 7, 2026, approved the cash investment in the Dubai-based subsidiary. The investment details are structured as follows:

Parameter	Details
Investment Amount	Up to ₹18.00 crores
Investment Mode	100% cash consideration
Completion Timeline	Within three months
Investment Structure	One or more tranches
Shareholding Impact	UPL FZE remains wholly-owned subsidiary

Subsidiary Background

Unique Pharmaceutical Laboratories, FZE was incorporated on December 10, 2013, under the Jebel Ali Free Zone regulations in Dubai. The subsidiary operates in the pharmaceuticals sector, specifically engaged in medicines trading activities. The company's recent financial performance shows a recovery in operations:

Financial Year	Revenue (AED)
FY 2024-25	627,639
FY 2023-24	No revenue
FY 2022-23	No revenue

Regulatory Compliance

The investment decision was disclosed in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As UPL FZE is a wholly-owned subsidiary, the transaction qualifies as a related party transaction conducted at arm's length. The company confirmed that promoters have no interest in UPL FZE except for the shares held through the parent company.

Strategic Purpose

The additional investment will be utilized towards the operational requirements of UPL FZE, supporting the subsidiary's medicines trading business in the Dubai market. No governmental or regulatory approvals are required for this acquisition, and the investment aligns with the parent company's core pharmaceutical business operations.

The announcement demonstrates J.B. Chemicals' commitment to strengthening its international presence through strategic investments in its existing subsidiary network, particularly in the Middle East region where UPL FZE operates.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.14%	+5.02%	+4.69%	+17.03%	+0.77%	+269.31%

J.B. Chemicals and Pharmaceuticals Limited has received a tax demand order of ₹37.00 lakhs from Tamil Nadu tax authorities, the company disclosed in a regulatory filing. The pharmaceutical company made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Tax Demand Details

The order has been issued by the Commercial Tax Officer, Tamil Nadu, concerning alleged violations during the financial year 2018-19. The tax demand specifically relates to disallowance and mismatch of Input Tax Credit (ITC) claimed by the company during that period.

Parameter	Details
Issuing Authority	Commercial Tax Officer, Tamil Nadu
Tax Demand Amount	₹37.00 lakhs
Period of Violation	FY 2018-19
Nature of Issue	Disallowance/mismatch of Input Tax Credit

Company's Response

J.B. Chemicals and Pharmaceuticals has expressed confidence in its position regarding the tax demand. The company plans to file an appeal against the order issued by the Tamil Nadu tax authorities.

Impact Assessment

According to the company's assessment, there will be no impact on its financial, operational, or other business activities due to this tax demand order. This suggests that the company views the demand as contestable and expects a favorable outcome through the appellate process.

Regulatory Compliance

The disclosure was made in compliance with SEBI's regulatory requirements. The company has fulfilled its obligation to inform stock exchanges and investors about material developments that could potentially affect its operations.

The pharmaceutical company's proactive disclosure demonstrates its commitment to maintaining transparency with stakeholders regarding regulatory matters.