HEG Limited has recommended a final dividend of Rs 3.40 per equity share, representing 170% of the face value of Rs 2 each, for the financial year 2025-26. The announcement, made by the Board of Directors on April 29, 2026, is subject to approval by shareholders at the ensuing 54th Annual General Meeting (AGM). The dividend will be paid or dispatched within 30 days from the date of the AGM, with tax deducted at source (TDS) at applicable rates.

The company informed shareholders that dividends are taxable in their hands under the Income-tax Act, 2025. Consequently, HEG Limited will deduct TDS at the time of payment. The applicable withholding tax rate varies based on the residential status and category of the shareholder, as well as the submission of requisite declarations and documents.

For resident shareholders, no tax will be deducted if the total dividend distribution during the Tax Year 2026-27 does not exceed INR 10,000. However, a higher rate of 20% applies if the Permanent Account Number (PAN) is not updated or is considered inoperative due to non-linkage with Aadhaar. Resident shareholders seeking nil or lower deduction must submit specific forms, such as Form 121, by June 19, 2026.

Non-resident shareholders face different withholding rates depending on their category. Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) are subject to a 20% tax rate, plus surcharge and cess, unless a beneficial tax treaty rate applies. Alternative Investment Funds (Category III) located in International Financial Services Centres are taxed at 10%, while other non-resident shareholders are generally taxed at 20% or 30% if they are residents of Notified Jurisdictional Areas. Sovereign wealth funds and pension funds notified by the Central Government are exempt from TDS.

Shareholders must submit all completed and signed documents via email to tdsdiv170@lnjbhilwara.com by June 19, 2026, quoting their folio or demat details. Failure to provide the necessary information by this deadline will result in TDS deduction at the highest prescribed rate without further communication. The company emphasized that any tax deducted at a higher rate due to insufficient documentation can be claimed as a refund by filing income tax returns, and no claims will lie against the company for such deductions.

TDS Rates for Resident Shareholders

Key Deadlines and Contacts

HEG Limited successfully concluded three NCLT-convened meetings on Tuesday, May 5, 2026, for equity shareholders, secured creditors, and unsecured creditors. Held via Video Conferencing (VC) and Other Audio-Visual Means (OAVM), the meetings were conducted pursuant to the order of the Hon'ble National Company Law Tribunal, Indore Bench dated March 26, 2026. All resolutions regarding the Composite Scheme of Arrangement amongst HEG Limited, HEG Graphite Limited, and Bhilwara Energy Limited were passed with the requisite majority by the respective stakeholders.

Meeting Schedule and Proceedings

The three meetings were held sequentially on the same day at the Registered Office of the Company in Mandideep, Madhya Pradesh. Mr. Ritesh Kumar Sharma, Advocate, chaired all sessions, assisted by Mr. Vivek Chaudhary, Company Secretary. Mr. S. Alam Khan of Alam Khan & Co. was appointed as the Scrutinizer by the Hon'ble NCLT vide order dated March 26, 2026. The meetings were held to consider the proposed Composite Scheme under Sections 230 to 232 of the Companies Act, 2013. The remote e-voting period remained open from Friday, May 1, 2026 at 9:00 a.m. (IST) to Monday, May 4, 2026 up to 5:00 p.m. (IST).

Equity Shareholders Voting Results

The equity shareholders meeting was attended by 66 shareholders via VC/OAVM. The record date for e-voting was April 28, 2026, with 1,37,819 shareholders holding 19,29,77,530 equity shares of Rs. 2/- each, representing an aggregate value of Rs. 38,59,55,060/-. A total of 374 valid e-ballots were received — 357 through remote e-voting and 17 through e-voting during the meeting. The resolution was passed with 99.9997% of votes in favour.

The consolidated report on public shareholders (excluding promoter and promoter group) showed that 365 members cast votes totalling 3,06,32,902 shares, of which 3,06,32,514 shares (99.9987%) were in favour and 388 shares were against.

Secured and Unsecured Creditors Results

The secured creditors meeting saw 100% participation, with all 5 creditors attending via video conferencing and voting in favour. The outstanding debt as on the cut-off date of March 31, 2026 was Rs. 5,59,55,57,560/-. All 5 valid e-ballots were cast through remote e-voting, representing 100% of the total debt value, with zero votes against or invalid.

The unsecured creditors meeting was attended by 40 out of 281 creditors. A total of 47 valid e-ballots were received through remote e-voting, representing a debt value of Rs. 5,75,78,65,358/- out of the total outstanding Rs. 6,27,50,83,062/- (91.76% of total). All 47 creditors voted in favour, representing 100% of the debt value voted upon, with zero votes against or invalid.

Conclusion

The Scrutinizer's consolidated report was issued on May 6, 2026, by CS Sahive Alam Khan, Practicing Company Secretary (M. No. FCS: F11411; C.P. No.: 16581). The voting results and the consolidated scrutinizer's reports have been submitted to the exchanges and are hosted on the Company's website at www.hegltd.com and on the NSDL website at www.evoting.nsdl.com . The results will be reported to the Hon'ble NCLT, Indore Bench.