Gowal Consulting Services Private Limited has reduced its shareholding in Punjab Chemicals and Crop Protection Limited by selling 4,20,000 equity shares through open market transactions. The sales occurred on June 5, June 8, June 19, and June 22, 2026, resulting in a decrease of the acquirer's stake from 24.47% to 21.04% of the total paid-up share capital of the target company.

The disclosure was submitted to BSE Limited and the National Stock Exchange of India Limited in accordance with Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing confirmed that Gowal Consulting Services Private Limited is not part of the promoter or promoter group of Punjab Chemicals and Crop Protection Limited.

Shareholding Details

The transaction involved the disposal of shares carrying voting rights. Prior to the sale, the acquirer held 30,00,000 shares, representing 24.47% of the total voting capital. The total equity share capital of the target company remains Rs. 12,26,21,850, divided into 1,22,62,185 equity shares of Rs. 10 each.

Breakdown of Holdings

The disclosure, signed by Director Jagmeet Singh Sabharwal, confirmed that there are no shares encumbered, nor are there any warrants or convertible securities held by the acquirer. The total diluted share capital of the target company was noted as not applicable in the filing.

Punjab Chemicals and Crop Protection Ltd has recommended a final dividend of Rs.3.00 per equity share for the financial year ended March 31, 2026. The Board of Directors, at its meeting held on May 01, 2026, approved the payout of 30% on shares with a face value of Rs.10 each. This dividend is contingent upon shareholder approval at the ensuing Annual General Meeting. The company communicated the tax deduction at source (TDS) implications under the Income-tax Act, 2025, effective April 1, 2026, which mandates tax withholding on dividend payments based on shareholder residential status and documentation.

The applicable TDS rate varies depending on the validity of the Permanent Account Number (PAN) and specific declarations submitted to the company or its Registrar and Transfer Agent (RTA), Alankit Assignments Limited. No tax will be deducted if the total dividend paid during the Tax Year 2026-27 does not exceed Rs.10,000 for resident individual shareholders. Shareholders must submit scanned copies of required documents, such as PAN cards and declarations, to info@alankit.com or investorhelp@punjabchemicals.com on or before June 30, 2026. Documents received after this date will not be considered for determining the applicable tax rate.

Resident Shareholders

For resident shareholders, the TDS rate is determined by the validity of the PAN and specific declarations. A valid PAN results in a 10% deduction, while an invalid or missing PAN attracts a 20% rate. Shareholders seeking a lower or nil deduction must provide a valid certificate from the Income Tax Department under section 395(1) of the Act. Additionally, individuals with dividend income exceeding Rs.10,000 may submit Form 121 to avoid TDS.

Certain entities, such as LIC, GIC, Business Trusts, and specified Mutual Funds, are exempt from TDS under section 393(1) and 393(5) of the Act, provided they submit a self-declaration and adequate documentary evidence.

Non-Resident Shareholders

Non-resident shareholders face varying TDS rates ranging from NIL to 30%, depending on their category and documentation. Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) are subject to a 20% rate plus surcharge and cess, or the applicable tax treaty rate, whichever is beneficial. To avail of the treaty rate, these shareholders must submit a Tax Residency Certificate and digital Form 41.

The company reserves the right to reject incomplete documents and deduct tax at a higher rate if discrepancies are found. Shareholders are advised to ensure their KYC details, including PAN and bank account information, are updated with the RTA or Depository Participant to facilitate seamless remittances.