Nelco Limited has fixed Tuesday, June 9, 2026 as the record date for determining shareholder entitlement to receive a dividend for the financial year ended March 31, 2026. The announcement was made in compliance with Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Subsequently, on May 13, 2026, the company issued a detailed communication to shareholders outlining the applicable Tax Deduction at Source (TDS) provisions, required documents, and submission deadlines under the Income Tax Act, 2025.

Dividend Details and Record Date

The Board of Directors, at its meeting held on April 20, 2026, recommended a dividend of ₹1 per equity share of ₹10 each, representing 10% of the face value. The dividend is conditional upon approval by the members at the 83rd Annual General Meeting (AGM). Key details are summarised below:

TDS Provisions for Resident Shareholders

As per the Income Tax Act, 2025, dividends paid or distributed by a company are taxable in the hands of shareholders, and the company is required to deduct tax at source at the time of dividend payment. For resident shareholders, TDS is applicable under Section 393(1) Table Sl. No. 7 of the Act at 10% on the dividend amount where shareholders have registered their valid Permanent Account Number (PAN). In cases where shareholders do not have a PAN or have not registered a valid PAN, TDS will be deducted at 20% under Section 397(2) of the Act.

The following TDS rates apply for resident shareholders:

No tax will be deducted on dividends payable to certain resident non-individual entities — including Insurance Companies, Mutual Funds, Alternative Investment Funds (AIF) registered as Category I or II with SEBI, and New Pension System (NPS) Trusts — provided they submit the required self-declarations and supporting documents as specified in Annexure 2. It is also noted that compulsory linking of PAN with Aadhaar has been effective from July 1, 2023; an inoperative PAN will attract TDS at the higher rate of 20%.

TDS Provisions for Non-Resident Shareholders

For non-resident shareholders, taxes are required to be withheld in accordance with Section 393(2) Table Sl. No. 17 of the Act at 20% plus applicable surcharge and cess on the dividend amount. Non-resident shareholders may avail benefits under the applicable Double Tax Avoidance Agreement (DTAA) between India and their country of tax residence, provided they submit the requisite documents. For Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), taxes will be withheld at 20% plus applicable surcharge and cess under Section 393(2) [Table Sl. No. 15] of the Income Tax Act, 2025.

To avail DTAA benefits, non-resident shareholders must submit a self-attested copy of their PAN card (or requisite details if PAN is unavailable), a Tax Residency Certificate (TRC) for FY 2026-27, electronically filed Form 41 from the Income Tax website, and a self-declaration of having no Permanent Establishment in India. Shareholders holding shares under multiple accounts under different status/category with a single PAN should note that the higher applicable tax rate will be considered on their entire holding.

Document Submission and Dividend Payment

Shareholders are required to submit all relevant tax-related documents on or before Wednesday, June 10, 2026. Resident shareholders may upload documents at the designated MUFG portal or send scanned copies to Csgexemptforms2627@in.mpms.mufg.com , mentioning "Nelco Limited" in the subject line. Non-resident shareholders are requested to send documents to dividend2026@nelco.in . No communication on tax determination or deduction will be entertained after June 10, 2026. Shareholders whose TDS is deducted at a higher rate due to non-submission of documents retain the option to file a return of income and claim a refund, if eligible.

In accordance with SEBI (LODR) Regulations, 2015, dividend will be paid only in electronic mode. Shareholders holding shares in physical form must submit bank details and KYC documents to MUFG Intime India Private Limited by June 10, 2026, while those holding shares in demat form must update their Electronic Bank Mandate with their respective Depository Participants by the same date. The dividend for FY 2025-26 will be paid after deducting applicable tax at source, subject to approval at the 83rd AGM. The intimation was signed by Ritesh Kamdar, Company Secretary & ACS 20154, and further information is available at www.nelco.in .

NELCO Limited's Board of Directors has officially approved the enhancement of the company's borrowing limits to ₹400 crores from the existing limit of ₹250 crores. The decision was formalized at the board meeting held on May 1, 2026, pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board meeting commenced at 3.00 p.m. and concluded at 3.40 p.m.

Enhanced Borrowing Structure and Financial Framework

The approved borrowing enhancement represents a 60% increase in the company's debt capacity, providing significant financial flexibility for expansion initiatives:

The Board has authorized certain identified persons to determine and finalize the terms and conditions for such fund-raising. The details will be disclosed at the time of the meeting convened for the allotment of securities, in the event that funds are raised through the issuance of securities.

Strategic Investment Focus

The fund raising initiative specifically targets investments in satellite communication businesses and technologies, indicating the company's strategic focus on this growing sector. The private placement approach for NCDs suggests a targeted funding strategy designed to attract institutional and qualified investors.

Comprehensive Regulatory Compliance Framework

The fund raising initiative operates under extensive regulatory oversight, ensuring compliance with multiple statutory requirements:

The company has ensured full transparency by making all information available on its official website at www.nelco.in , providing stakeholders with complete access to the board meeting outcomes and regulatory documentation.

Implementation Timeline and Next Steps

The approval provides NELCO with the framework to proceed with fund raising activities as market conditions and business requirements dictate. The company has established a structured approach where specific terms and conditions will be determined by authorized personnel and disclosed during the securities allotment process, ensuring appropriate timing and market alignment for the fund raising initiatives.