Welspun Corp Limited's wholly owned subsidiary, Welspun Mauritius Holdings Limited, has divested a 4.5% equity stake in East Pipes Integrated Company for Industry (EPIC). The transaction was executed on 9 June 2026 through a series of negotiated trades on the Tadawul Stock Exchange in the Kingdom of Saudi Arabia (KSA). The aggregate consideration for the sale amounted to SAR 283.46 million, approximately US$ 75.59 million.

Consequent to this divestment, Welspun Pipes Inc., USA, a wholly owned subsidiary of Welspun Corp, will continue to hold a 22% equity stake in EPIC. The disclosure follows a previous intimation dated 24 March 2026 regarding the potential stake sale. The transaction does not fall under related party transactions and was conducted at arm's length.

Financials of East Pipes Integrated Company

The financial performance of EPIC for the period ending 31 March 2026 was disclosed in the regulatory filing. The company reported a total income of SAR 2,298 million and a profit before tax of SAR 621 million. The net worth of the entity stood at SAR 1,564 million as of the same date.

The sale was conducted in favour of identified financial investors. As EPIC is a listed entity, a specific agreement for sale was not applicable for the transaction executed on the stock exchange. The completion of the sale was finalized on 9 June 2026.

Welspun Corp Limited has established June 30, 2026, as the cut-off date for shareholders to submit necessary documents to determine the applicable tax deduction rate on the proposed dividend for the financial year ended March 31, 2026. The Board of Directors recommended a dividend of 100%, or ₹5 per equity share of face value ₹5 each, at its meeting held on May 21, 2026. The payout is subject to approval by shareholders at the ensuing Annual General Meeting.

Under the provisions of the Income Tax Act, 2025, the company is required to deduct tax at source from dividends payable to shareholders. The applicable rate depends on the shareholder's residency status and the submission of valid declarations such as Permanent Account Number (PAN) details or specific forms for exemptions.

Tax Deduction Rates for Shareholders

The company outlined the tax deduction structure for different categories of shareholders. For resident individuals, no tax will be deducted if the total dividend during the financial year does not exceed ₹10,000 or if Form 121 is submitted. For other resident shareholders with a valid PAN, the tax deduction rate is 10%, rising to 20% if PAN is unavailable or invalid.

Non-resident shareholders face a withholding tax rate of 20%, plus applicable surcharge and cess, unless they provide documents to claim benefits under Double Tax Avoidance Agreements (DTAA). To avail treaty benefits, non-residents must submit a Tax Residency Certificate, Form 41, and a self-declaration regarding beneficial ownership.

Document Submission Requirements

Shareholders must send scanned copies of the required forms to the company's registrar or via email to CS_WCL@welspun.com or investor.helpdesk@in.mpms.mufg.com on or before June 30, 2026. Resident individuals can also submit Form 121 electronically through their Depository Participants, either NSDL or CDSL.

The company stated that any communication received after the deadline will not be considered for determining the tax rate. If tax is deducted at a higher rate due to non-submission of documents, shareholders may file a return of income to claim a refund if eligible.