Vardhman Special Steels has announced a major expansion initiative with its board approving the establishment of a new forging plant in Punjab. The board of directors, in their meeting held on December 22, 2025, approved the proposal for setting up a manufacturing unit for forging of steel meant for the automobile industry. The project represents a substantial investment of ₹475.00 crores and is strategically positioned to serve the automotive sector with Japanese-quality manufacturing standards.

Board Meeting and Regulatory Disclosure

The board meeting commenced at 10:00 a.m. and concluded at 12:15 p.m. on Monday, December 22, 2025. The company has made the necessary disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, informing both BSE Limited and The National Stock Exchange of India Ltd about this significant development.

Strategic Investment and Forward Integration

The new forging facility represents a forward integration of Vardhman Special Steels' existing steel-making operations, offering a comprehensive, one-stop solution for automotive Original Equipment Manufacturers (OEs). This strategic move is backed by Japanese-quality standards, positioning the company to deliver superior products to the automotive industry.

Automotive Sector Focus and Expected Benefits

The new forging plant is specifically designed for forging of alloy steel to make components for the automotive industry. This facility will enable the company to provide end-to-end solutions to automotive manufacturers, leveraging their existing steel-making expertise while expanding into value-added forging operations.

The expected benefits include enhanced manufacturing capabilities, improved market positioning in the automotive supply chain, and the ability to offer comprehensive solutions backed by Japanese-quality standards. This development aligns with the growing demand for precision-engineered forging products in the automotive sector.

Expansion Significance

This development represents Vardhman Special Steels' continued expansion in the manufacturing sector, with the Punjab location providing strategic advantages for serving northern markets. The substantial investment amount reflects the company's long-term commitment to strengthening its market position in the forging industry and creating a vertically integrated business model that spans from steel-making to component manufacturing for the automotive sector.

Vardhman Special Steels Limited has disclosed receiving a Goods and Services Tax (GST) penalty of ₹11.56 lakh from tax authorities in Pune. The company made this disclosure under Regulation 30 of the SEBI Listing Regulations.

Penalty Details and Background

The penalty was imposed by the Superintendent, Central Tax, Range-V, Division-IV (Chakan), Pune-I Commissionerate through an order. The company received this order on December 15.

Reason for Penalty

The GST penalty stems from an issue related to e-way bill generation. According to the company's disclosure, the penalty was imposed due to a second e-way bill generated by a customer that mentioned an invoice number raised by Vardhman Special Steels on that particular customer. This appears to be a procedural compliance matter under GST regulations.

Company's Response and Next Steps

Vardhman Special Steels has indicated that it plans to file an appeal against the said order. The appeal will be submitted before the Additional Commissioner (Appeals), Central Excise GST, Pune. This represents the company's formal challenge to the penalty imposed by the tax authorities.

Impact Assessment

The company has specifically stated that this order is not expected to have any material impact on its financial, operational, or other activities. This assessment suggests that while the penalty represents a regulatory compliance matter, it is not anticipated to significantly affect the company's business operations or financial performance.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Para A (sub-para 20) of Part A of Schedule III of the SEBI Listing Regulations. This regulatory framework requires listed companies to promptly inform stock exchanges about material events and developments that could impact investor decisions.