Maithan Alloys Limited , a leading ferro alloys manufacturer, has successfully completed the incorporation of its wholly-owned subsidiary for Non-Banking Financial activities, marking a significant milestone in the company's diversification strategy.

NBFC Subsidiary Successfully Incorporated

The company has incorporated Maithan Capital Limited as its wholly-owned subsidiary, receiving the Certificate of Incorporation from the Ministry of Corporate Affairs on December 18, 2025. The certificate was received by the company at 11:47 A.M. on the same day, completing the process that was initially authorized by the Board of Directors on November 13, 2025.

Financial Structure and Investment Details

The subsidiary has been established with an authorized, issued, subscribed and paid-up capital of ₹11.00 crore, comprising 1,10,00,000 equity shares of ₹10 each. The entire shareholding is held by Maithan Alloys Limited and its nominees, making it a completely owned subsidiary.

Business Objectives and Strategic Impact

Maithan Capital Limited has been incorporated to carry out Non-Banking Financial activities as may be permitted by the Reserve Bank of India (RBI). This strategic move represents Maithan Alloys' diversification beyond its core ferro alloys operations, potentially opening new revenue streams in the financial sector.

The newly incorporated company is yet to commence its business operations and will require necessary approvals from RBI for its NBFC activities. As of the incorporation date, the subsidiary reports nil turnover and PAT, with a net worth of ₹11.00 crore.

Leadership Appointments and Operational Updates

Alongside the subsidiary incorporation, the company has also appointed Mr. Sreejith Ariyanthari Thazhemadam as Senior Management Officer and Plant Head of its Visakhapatnam Unit, effective from November 13, 2025. Mr. Thazhemadam brings over 20 years of experience in ferro alloys manufacturing, with qualifications including B.E. in Metallurgy Engineering and proficiency in SAP and ERP systems.

Company Operations Overview

These developments reflect Maithan Alloys' strategic approach to business diversification while strengthening its operational leadership across its ferro alloys manufacturing units.

Maithan Alloys has disclosed receiving a GST order from tax authorities, demanding an aggregate amount of ₹1,61,17,491.10 related to an alleged excess refund claim of Input Tax Credit on Compensation Cess. The company made this disclosure on December 13, 2025, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

GST Order Details

The Assistant Commissioner of ASANSOL-II Division, BOLPUR, KOLKATA, CBIC issued an order under Section 73 of CGST Act, 2017 against the company. The order addresses what the authority considers an erroneous refund of ITC of Compensation Cess, with the violation categorized as excess claim of refund in respect of ITC (Compensation Cess) under Section 54 of CGST Act, 2017 and rules framed thereunder.

Timeline and Communication

The GST order was originally dated December 4, 2025, but Maithan Alloys became aware of the particulars of this order on December 12, 2025, at around 2:30 P.M. via the GST portal. The company promptly disclosed this information to stock exchanges the following day, maintaining compliance with regulatory disclosure requirements.

Company's Response

Maithan Alloys has indicated that it is currently evaluating its options to contest the order issued by the CGST Authority. The company has assessed the potential impact on its financial, operational, or other activities at the aggregate amount of ₹1,61,17,491.10 mentioned in the order.

Regulatory Compliance

The disclosure was made in accordance with Regulation 30 of SEBI (LODR) Regulations, 2015, read with Schedule III of the said regulations and Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, issued by SEBI. The company has informed all relevant stock exchanges including NSE, BSE, and The Calcutta Stock Exchange Limited about this development.

This regulatory action represents a financial exposure for the company, and the outcome of any potential contest proceedings will be crucial for determining the actual financial impact on Maithan Alloys' operations and financial position.