E2E Networks Limited has disclosed that it received an order from the Office of the Collector of Stamps, Government of NCT of Delhi, regarding the adjudication of stamp duty. The order, dated May 14, 2026, determines a stamp duty liability of Rs 1,27,92,189 along with a penalty of Rs 1,25,00,000, aggregating to Rs 2,52,92,189. This liability pertains to the issuance of certain shares by the company in dematerialized form from the year 2021 to 2025.

The matter arises from a circular issued during 2025 by the Additional District Magistrate, Collector of Stamps, Revenue Department, Delhi. This circular disputes the rate of stamp duty applicable to the issuance of dematerialized shares under the Indian Stamp Act, 1899, as amended by the Finance Act, 2019 and effective from July 01, 2020. The authority alleges that payment of stamp duty through depositories such as NSDL or CDSL does not discharge the company's statutory liability under the law applicable in the NCT of Delhi.

Legal Proceedings and Company Stance

The company has clarified that it had paid the stamp duty on such issuances in accordance with Section 9A (1) read with Article 56A of Schedule I of the Indian Stamp Act, 1899. e2e networks has contested the order and stated that it has already filed a writ petition before the Hon'ble High Court of Delhi. The proceedings are presently under judicial consideration.

Regarding the receipt of the order, the company noted that no email communication or physical copy was received from the Revenue Department. The order was handed over to the company's legal counsel before the Hon'ble High Court in Delhi on the day of the disclosure.

Financial Impact

The company stated that the impact of the order can be assessed only based on the outcome of the writ petition filed before the Hon'ble Delhi High Court. Consequently, the financial implications remain contingent upon the judicial decision in this matter.

E2E Networks Limited's Board of Directors, at their meeting held on Wednesday, May 13, 2026, approved the incorporation of two Wholly Owned Subsidiaries (WOS)—one in India and one in the state of Delaware, United States of America. The board meeting commenced at 9:30 A.M. and concluded at 10:10 A.M. This disclosure has been made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Rationale Behind the Subsidiaries

The two proposed entities serve distinct strategic purposes within E2E Networks' broader business expansion. The Indian WOS is being incorporated specifically for deploying large-scale GPU infrastructure and facilitating funding arrangements in relation thereto. The US-based WOS, to be incorporated in the state of Delaware, is expected to provide enhanced access to international markets. Both subsidiaries will operate within the IT Industry, which is consistent with E2E Networks' core line of business.

Key Details of the Proposed Subsidiaries

The following table outlines the key parameters of the two proposed Wholly Owned Subsidiaries as disclosed by the company:

Investment Structure and Shareholding

For the Indian subsidiary, E2E Networks proposes to invest Rs. 1,00,000 by subscribing to 10,000 Equity Shares of face value Rs. 10/- each. For the US subsidiary, the company proposes to invest USD 40,000 by subscribing to 40,000 Equity Shares of face value USD 1 each. In both cases, 100% shareholding of the proposed Wholly Owned Subsidiaries shall be held by E2E Networks Limited. The investment in each entity will be made by way of subscription to the share capital of the respective WOS.

Related Party and Regulatory Considerations

Once incorporated, both WOS entities will become related parties of E2E Networks Limited and its other subsidiaries. The company has clarified that, save and except for the related party relationship arising from the WOS structure, the Promoters, Promoter Group, and Group Companies are not interested in the transaction. The incorporation of the Indian entity will be subject to approval from the concerned Registrar of Companies, while the US entity will require approval from the Secretary of State of Delaware. The names of both entities will be finalised upon receipt of the respective regulatory approvals. The process of incorporation for both entities is expected to be initiated within a period of 2 (two) weeks, with the overall timeline dependent on approvals from the relevant authorities.