Rossari Biotech Receives Arbitration Award in Unitop Chemicals Dispute
Rossari Biotech Limited received the final arbitration award on January 21, 2026, concluding proceedings with Unitop Chemicals Private Limited shareholders. The tribunal dismissed both the sellers' Put Option claim and the company's counter claims, directing Rossari Biotech to release INR 97,90,617 as tax refund with 12% annual interest. The company expects limited financial impact and is studying the award to consider its options.
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Rossari Biotech Limited has concluded arbitration proceedings related to its material unlisted subsidiary Unitop Chemicals Private Limited, receiving the final award that resolves a dispute dating back to a 2021 share purchase agreement.
Arbitration Background and Timeline
The arbitration proceedings were initiated by existing shareholders of Unitop Chemicals Private Limited under a Share Purchase Agreement dated June 02, 2021. The sellers in the dispute included Barkur Dharmaraj Shetty, B.D. Shetty HUF, Saibala Dharmaraj Shetty, Rajeshwari D Shetty, Jeenanath Dharmaraj Shetty, and Balakrishna Barkur Shetty.
The company had previously disclosed the initiation of these proceedings on December 13, 2023. The Arbitral Tribunal passed its final award on January 21, 2026, which was received by the company on January 28, 2026.
Key Arbitration Outcomes
The arbitration tribunal delivered a mixed verdict that addressed claims from both parties:
| Outcome: | Details |
|---|---|
| Sellers' Put Option Claim: | Dismissed |
| Company's Counter Claims: | Dismissed |
| Tax Refund Direction: | INR 97,90,617 plus 12% annual interest |
| Arbitration Costs: | Shared equally between parties |
The tribunal specifically dismissed the sellers' claim concerning their exercise of the Put Option under the Share Purchase Agreement, which would have required Rossari Biotech to purchase third tranche shares in Unitop Chemicals Private Limited.
Financial Impact Assessment
The company has assessed the financial implications of the arbitration award as limited in scope. The primary financial obligation consists of the tax refund amount of INR 97,90,617 along with applicable interest at 12% per annum, plus the company's share of arbitration costs.
Rossari Biotech has stated that this financial liability is not expected to have any material impact on the company's overall financials. The award remains confidential as noted in the regulatory disclosure.
Regulatory Compliance and Next Steps
The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company filed the update in compliance with SEBI Master Circular dated November 11, 2024, and Circular dated December 31, 2024.
Rossari Biotech indicated it is currently studying the arbitration award and considering its available options regarding the tribunal's decision. The company maintains its registered office in Mumbai and operates manufacturing facilities in Silvassa and Gujarat, focusing on home, personal care, performance chemicals, textile specialty chemicals, and animal health and nutrition segments.
Historical Stock Returns for Rossari Biotech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.14% | +5.84% | -5.21% | -22.87% | -22.27% | -38.16% |
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