Maithan Alloys Limited acquired a 0.24% stake in ESDS Software Solution Limited for ₹50.19 crore on September 23, 2026. The transaction involved the purchase of 279,000 equity shares through the stock exchange, classified as an investment for long-term and short-term benefits.

This acquisition follows a previous transaction on September 21, 2026, where Maithan Alloys purchased 11,730 shares (0.01% stake) for ₹1.90 crore. The company clarified that it does not intend to acquire control or management influence over ESDS Software Solution. The acquisition was executed at arm's length, with no related party transactions involved, and no governmental or regulatory approvals were required for the completion of the deal.

Target entity financials

ESDS Software Solution Limited is an AI-enabled end-to-end IT service provider specializing in data center, cloud, colocation, and managed services. The company serves sectors including BFSI, government, healthcare, and manufacturing. Its financial performance over the last three fiscal years demonstrates consistent growth in turnover.

What the numbers show

ESDS Software Solution’s turnover expanded from ₹281 crore in FY24 to ₹378 crore in FY26, reflecting a significant upward trajectory in revenue generation. With a reported net worth of ₹520 crore and PAT of ₹62 crore, the target entity maintains a healthy balance sheet relative to its profit margins. The cumulative acquisition cost for the 0.25% total stake (0.01% + 0.24%) stands at approximately ₹52.09 crore, indicating a passive investment strategy rather than a strategic operational integration by Maithan Alloys.

Maithan Alloys has communicated the tax deducted at source (TDS) provisions for its final dividend of ₹6 per share for FY26. The record date for determining eligible shareholders is September 21, 2026.

The company is required to deduct TDS from the dividend payment as per the Income-tax Act. The applicable rate varies based on the shareholder's residential status and category. Non-resident shareholders are subject to a 20% withholding tax rate, plus applicable surcharge and cess, unless they provide valid documentation to claim benefits under a Double Tax Avoidance Agreement (DTAA).

TDS rates for resident shareholders

For resident shareholders, the standard TDS rate is 10%. However, exemptions apply under specific conditions. Individual shareholders with a valid PAN will not face TDS if their aggregate dividend income during the financial year does not exceed ₹10,000. Mutual funds, insurance companies, and Category I and II Alternative Investment Funds (AIFs) are also subject to a 10% TDS rate unless they submit valid self-declarations and registration certificates proving exemption eligibility.

Compliance deadlines and documentation

Shareholders seeking lower or nil TDS must submit required documents via email to the company's registered email IDs by October 1, 2026. This includes Tax Residency Certificates for non-residents, Form-41, and self-declarations for DTAAs. For residents, valid Form-121 or certificates issued under Section 395(1) of the Act must be provided.

Failure to provide a valid PAN, or having an invalid PAN not linked with Aadhaar, will result in TDS deduction at a higher rate of 20%. The company emphasized that no communication regarding tax determination will be entertained after the October 1 deadline. Dividend payments will be made electronically to bank accounts updated with depository participants or the registrar.