Axis Trustee Services Limited (ATSL) has released an encumbrance over 9,20,72,053 equity shares of afcons infrastructure , representing 25.03% of the company’s total share capital. The release, recorded in the depository system on July 21, 2026, follows the full redemption of debentures issued by Goswami Infratech Private Limited (GIPL) and Capespan Investment Private Limited (Capespan). This development removes significant collateral held against the promoter group’s stake, potentially enhancing the liquidity and marketability of these shares.

The disclosure was made under Regulation 29(2) read with Regulation 29(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. ATSL acted as the common security trustee for both GIPL and Capespan. Prior to this release, ATSL held no beneficial interest in the shares but maintained the encumbrance as security for debenture holders.

The encumbrance originated from two primary pledges. First, under the GIPL Debenture Trust Deed dated June 26, 2023, SP Finance Private Limited and SC Finance and Investments Private Limited pledged their 100% stake in GIPL. Additionally, GIPL created an initial pledge over 1,85,13,453 Afcons shares (5.03%) in favor of ATSL. Since SP Finance and SC Finance collectively own GIPL, which holds 9,20,72,053 Afcons shares, an indirect encumbrance was created on the entire holding.

Second, under the Capespan Debenture Trust Deed dated December 15, 2025, similar structures were put in place. On December 17, 2025, SP Finance and SC Finance extended the GIPL pledge to ATSL as common security trustee. Simultaneously, GIPL extended the initial Afcons pledge to cover debenture holders of both GIPL and Capespan. A subsequent pledge was created on May 15, 2026, over 7,35,58,600 Afcons shares previously locked-in under SEBI regulations, further securing the debt instruments.

With the full redemption of both the GIPL Debentures and Capespan Debentures, all associated pledges — including the GIPL Pledge, Initial Afcons Pledge, and Subsequent Afcons Pledge — were released. The total equity share capital of Afcons remains unchanged at ₹3,67,78,46,310, consisting of 3,67,78,46,310 shares with a face value of ₹10 each.

Shareholding Structure Details

What the Numbers Show

The release of a 25.03% encumbrance is a material event for shareholder structure analysis. It indicates that the promoter group has satisfied its debt obligations linked to these specific securities, removing the risk of forced sale or transfer restrictions associated with pledged shares. This enhances the stability of the promoter holding and may positively influence investor sentiment regarding corporate governance and financial health.

Afcons Infrastructure Limited has communicated the tax deduction at source (TDS) requirements for the final dividend of ₹2 per equity share recommended for the financial year ended March 31, 2026. The dividend, payable on or after July 30, 2026, subject to shareholder approval at the Annual General Meeting (AGM), will be subject to withholding tax under the Income-tax Act, 2025. The company has specified that the tax rate varies based on the residential status of the shareholder and the documentation submitted.

The Board of Directors, at its meeting on May 18, 2026, recommended the dividend. The AGM is scheduled for July 30, 2026, at 3:00 p.m. IST via Video Conferencing. Shareholders must submit relevant declarations and documents, such as Form 121 or Tax Residency Certificates, by Thursday, July 16, 2026, to ensure the appropriate tax rate is applied. Failure to provide valid documents may result in a higher TDS deduction.

Withholding Tax Rates for Residents

For resident shareholders, the TDS rate depends on the availability of a valid PAN and specific exemptions. No tax will be deducted if the total dividend during the Tax Year 2026-27 does not exceed ₹10,000. The applicable rates for other categories are listed below:

Residents seeking nil deduction must submit forms such as Form 121 or self-declarations for entities like LIC, GIC, or Category I/II AIFs.

Withholding Tax Rates for Non-Residents

Non-resident shareholders face different rates based on their category and treaty benefits. Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) are subject to 20% tax or the treaty rate, whichever is beneficial, provided a Tax Residency Certificate and digital Form 41 are submitted.

Shareholders must upload documents to the Registrar & Share Transfer Agent, MUFG Intime India Private Limited, via the specified link before the deadline. The company reserves the right to reject incomplete documents and apply the higher statutory rate.