Zee Media Corporation Limited has received significant relief in a GST matter, with tax authorities dropping a demand cum show cause notice worth Rs. 1,11,36,600/-. The company disclosed this favorable development to stock exchanges on February 24, 2026, under Regulation 30 of SEBI listing regulations.

Favorable GST Order Details

The Office of the Assistant Commissioner, Central Goods and Services Tax, Division-1, Noida issued a favorable order dated February 23, 2026, dropping the proceedings against the company. This order specifically addresses the demand cum show cause notice bearing number 60/AE/AC/2025-26 dated September 19, 2025, which was originally issued by the Office of the Principal Commissioner, Central Goods and Service Tax, Noida.

Background of GST Demand

The original demand cum show cause notice was issued under Section 74 of the Central Goods and Service Tax Act, 2017, and Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017. The tax authorities had alleged that the company availed inadmissible Input Tax Credit (ITC) and was accordingly liable to pay applicable interest on the inadmissible ITC amount, along with being subject to penal action.

Regulatory Compliance

Zee Media Corporation had initially informed the exchanges about receiving the demand cum show cause notice on September 23, 2025, in compliance with disclosure requirements. The company has now provided a follow-up disclosure regarding the favorable resolution of this matter. The disclosure includes all required details under Regulation 30 of LODR Regulations as per SEBI circulars.

Impact Assessment

According to the company's disclosure, there is no quantifiable monetary impact on the financial, operational, or other activities of the listed entity from this favorable order. The dropping of the demand notice eliminates the potential liability of Rs. 1,11,36,600/- along with associated interest and penalties that the company would have faced if the original allegations were upheld.

This development provides significant relief to Zee Media Corporation, resolving the GST matter that had been pending since September 2025 and removing the uncertainty surrounding the substantial demand amount and associated compliance issues.

AUV Innovations LLP has made a substantial acquisition in Zee Media Corporation Limited, purchasing 1,51,15,614 shares through open market transactions on December 24, 2025. The acquisition was disclosed under Regulation 29(2) of SEBI's Substantial Acquisition of Shares and Takeovers Regulations, 2011, as the purchase crossed the mandatory disclosure threshold.

Acquisition Details

The transaction details reveal the scope and impact of this strategic acquisition:

Shareholding Changes

The acquisition has significantly altered AUV Innovations LLP's position in Zee Media Corporation. Prior to this transaction, the company held 4,37,18,761 shares, representing 6.99% of the total share capital. Following the acquisition, their total holding has increased to 5,88,34,375 shares, constituting 9.41% of the company's equity.

Capital Structure Context

Zee Media Corporation's current equity share capital stands at ₹62,54,28,680, divided into 62,54,28,680 equity shares of ₹1.00 each. The diluted share capital, assuming full conversion of outstanding warrants, amounts to ₹89,37,62,013, comprising 89,37,62,013 equity shares. This diluted calculation includes 26,83,33,333 warrants held by the acquirer.

Previous Acquisitions

The disclosure document notes that AUV Innovations LLP had made earlier acquisitions that did not require separate disclosure due to their smaller size. The company acquired 50,00,000 shares on September 5, 2025, and an additional 47,34,386 shares on December 22, 2025, through open market purchases. These transactions aggregated to 1.56% of total share capital, falling below the 2% threshold that would have mandated disclosure under SEBI regulations.

Regulatory Compliance

The acquisition disclosure was filed with both BSE Limited and National Stock Exchange of India Limited, where Zee Media Corporation's shares are listed. AUV Innovations LLP, registered with LLPIN ACO-1892 and headquartered in Mumbai, has fulfilled its regulatory obligations by providing comprehensive details of the transaction as required under SEBI's substantial acquisition framework. The disclosure confirms that no encumbrances, voting rights other than shares, or convertible securities were involved in this particular transaction.