20 microns has incorporated Guizhou Twenty Microns International Trade Co., Ltd. in the People's Republic of China as an overseas step-down subsidiary to strengthen its international business presence. The entity was incorporated on June 3, 2026, by 20 Microns Sdn. Bhd., a wholly-owned subsidiary of the company, with the objective of supporting trading, import-export, and allied business activities in China. This strategic move aims to bolster operations related to non-metallic minerals, metallic ores, and non-ferrous metals in the region.

The incorporation was completed under the applicable laws of the People's Republic of China, and no further material governmental or regulatory approvals are required except for statutory registrations in the ordinary course of business. The initial subscription money has been infused by way of cash consideration. 20 Microns Sdn. Bhd. holds a 90.00% equity shareholding in the new entity, resulting in indirect control for 20 Microns Ltd.

Key Details of the Incorporation

The new subsidiary will focus on trading non-metallic minerals, mineral products, metallic ores, and non-ferrous metals. This expansion aligns with the company's strategy to enhance its footprint in key international markets. The disclosure regarding this incorporation was submitted to the exchanges on June 15, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

20 microns has recommended a final dividend of ₹1.25 per fully paid-up equity share, representing 25% of the face value of ₹5 each, for the financial year ended March 31, 2026. The dividend distribution is subject to approval by shareholders at the 39th Annual General Meeting (AGM) scheduled for July 31, 2026. Upon approval, the payout will be made to eligible shareholders on or before August 29, 2026. The record date to determine shareholder entitlement has been fixed as July 17, 2026.

The company has communicated the tax implications for the dividend, noting that tax will be deducted at source (TDS) as per the Income Tax Act, 2025, and the Finance Act, 2026. For resident shareholders with a valid Permanent Account Number (PAN), the TDS rate is 10%. If the PAN is invalid, inoperative, or not linked with Aadhaar, the TDS rate increases to 20%. Resident individuals are exempt from TDS if the total dividend during FY 2026-27 does not exceed ₹10,000 or if they furnish Form 121 or an exemption certificate.

Resident non-individual entities such as insurance companies, mutual funds, and Alternative Investment Funds (AIF) can claim exemption by submitting specific self-declarations and registration documents. Non-resident shareholders face a withholding tax rate of 20%, plus applicable surcharge and cess, unless they provide a certificate for lower or nil withholding under Section 395 of the Act or opt for benefits under the Double Tax Avoidance Agreement (DTAA). To avail DTAA benefits, non-resident shareholders must submit a Tax Residency Certificate (TRC), e-filed Form 41, and a self-declaration of treaty eligibility.

Shareholders seeking lower withholding rates must ensure the certificate is issued against the company's TAN BRDM03839D. The company has set a cut-off date of July 20, 2026, for submitting details to determine the appropriate withholding tax rate. Additionally, all tax-related documents, including Form 121 and declarations under Section 393(5), must be submitted to the registered office or via email by June 15, 2026, at 6:00 p.m. IST. Documents received after this deadline may not be considered, potentially resulting in a higher TDS deduction.

The company also advised shareholders to update their bank account details in their demat accounts or physical folios to ensure timely dividend credit. Following SEBI mandates, dividends for physical shareholders will be paid only via electronic mode from April 1, 2024, requiring the submission of PAN, nomination details, and bank information.

Dividend and Tax Details