Zydus Lifesciences Limited has announced the dissolution of its wholly owned subsidiary Auroralux S.A.S., Luxembourg, effective December 31, 2025. The pharmaceutical company informed stock exchanges about this corporate restructuring move under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Corporate Structure Changes

The dissolution involves a step-down subsidiary arrangement where Auroralux S.A.S. is a wholly owned subsidiary of Zydus MedTech (France) S.A.S., which itself is a step-down wholly owned subsidiary of Zydus Lifesciences Limited. The company received official intimation on January 2, 2026, due to festive New Year holidays.

Asset Transfer and Subsidiary Realignment

Upon dissolution, all assets and liabilities of Auroralux S.A.S. will be transferred to Zydus MedTech (France) S.A.S. This transfer includes the dissolved entity's investments in Amplitude Surgical S.A.S. As a result of this restructuring, Amplitude Surgical S.A.S. will become a wholly owned subsidiary of Zydus MedTech (France) S.A.S.

The asset transfer mechanism ensures continuity of operations and maintains the pharmaceutical company's European business interests through its French subsidiary structure.

Business Impact Assessment

Zydus Lifesciences has explicitly stated that the dissolution of Auroralux S.A.S. will not impact the company's business operations. This indicates that the move represents an internal corporate restructuring rather than a strategic business exit from any particular market or therapeutic area.

Regulatory Compliance

The announcement was made in compliance with regulatory requirements, with Company Secretary and Compliance Officer Dhaval N. Soni signing the disclosure document. The communication was sent to both BSE Limited and National Stock Exchange of India Limited, ensuring full transparency with stakeholders about the corporate structural changes.

Zydus Lifesciences Limited has received a GST demand order of ₹2.8 crores from Gujarat tax authorities related to alleged tax credit violations during the financial year 2018-19. The pharmaceutical company disclosed this development under regulatory compliance requirements on December 30, 2025.

GST Demand Order Details

The Assistant Commissioner of State Tax, Gujarat, issued the demand order under section 74 of the CGST Act, 2017. The order addresses issues pertaining to inadmissible availment of Input Tax Credit for the financial year 2018-19.

Nature of Alleged Violation

The order specifically targets the company's Input Tax Credit availment practices during FY 2018-19. According to the tax authorities, certain Input Tax Credit claims were inadmissible under the provisions of the CGST Act, 2017. The total demand of ₹2.8 crores encompasses the principal amount along with applicable interest and penalty components.

Company's Response Strategy

Zydus Lifesciences has announced its intention to challenge the order through the appellate process. The company expressed confidence in its position, citing favorable precedents from higher judicial forums.

Key aspects of the company's stance:

• Plans to file an appeal against the demand order
• References past precedents from High Court and Supreme Court judgments
• Maintains optimism about securing a favorable outcome
• Asserts no material financial impact on operations

Financial and Operational Impact

The company has categorically stated that the GST demand order will not result in any material financial impact on its operations. This assessment appears to be based on the company's confidence in successfully appealing the order and the relatively modest size of the demand in relation to the company's overall financial position.

The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding potential regulatory challenges.