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Zydus Wellness Subsidiary Faces ₹56.33 Crore GST Demand Over Heinz IP Rights Deal

Updated on: Dec 30, 2024, 4:52 PM IST
Zydus Wellness arm ZWPL receives ₹56.33 crore GST demand for the pre-2019 Heinz IP rights deal. The firm sees merit in the case; the impact is limited due to indemnity.
Zydus Wellness Subsidiary Faces ₹56.33 Crore GST Demand Over Heinz IP Rights Deal
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Zydus Wellness Ltd reported that its fully-owned subsidiary, Zydus Wellness Products Ltd (ZWPL), has received a GST demand of ₹56.33 crore from the Directorate General of GST Intelligence, Surat Zonal Unit. The demand includes applicable interest and penalties.

Allegation Overview

The demand is linked to GST liability arising from Heinz India Pvt Ltd’s acquisition of intellectual property rights from Heinz Italia S.P.A., which has since merged with ZWPL.

The alleged GST liability pertains to transactions made before January 30, 2019, during the pre-acquisition period.

ZWPL stated that it believes the case has strong merit and is reviewing the notice to decide its next steps.

Financial and Operational Impact

The company emphasised that the demand will not affect its financial or operational activities. Heinz Italia S.P.A. will indemnify any final tax liability, along with interest and penalties, ensuring limited financial exposure for ZWPL.

ZWPL is evaluating its legal and financial options to address the demand and safeguard its interests.

About Zydus Wellness

Zydus Wellness, based in Ahmedabad, is an Indian consumer goods company specialising in nutrition and skincare products. It is a subsidiary of Zydus Lifesciences, a pharmaceutical company. The company’s popular brands include Glucon-D, Sugar-Free, EverYuth, Complan, and Nycil.

Zydus Wellness share price is trading at ₹1,887.25 as of December 30, 9:42 AM, reflecting a slight drop of 0.60% (₹11.30). The stock opened at ₹1,887.25, with an intraday high of ₹1,893.55 and a low of ₹1,875.65. The company’s market capitalisation stands at ₹12,010 crore, with a P/E ratio of 37.61 and a dividend yield of 0.26%. Over the past 52 weeks, the stock has ranged between a high of ₹2,484.00 and a low of ₹1,440.15.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Dec 30, 2024, 9:48 AM IST

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