Balrampur Chini Mills Limited has announced the withholding of dividend payments to shareholders who have not complied with mandatory KYC documentation requirements, as per recent SEBI regulations. The company communicated this development to stock exchanges on December 11, 2025, highlighting the impact of regulatory changes on dividend distribution processes.

SEBI Regulatory Framework

The Securities and Exchange Board of India (SEBI) issued Master Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/91 dated June 23, 2025, mandating that security holders with physical securities must update their KYC details to remain eligible for any payments including dividends, interest, or redemption. Additionally, SEBI's notification dated November 18, 2025, requires all dividend payments to be made exclusively through electronic mode, eliminating physical payment methods such as cheques and warrants.

Affected Shareholders and Requirements

The company has identified shareholders whose folios lack complete KYC information or have insufficient bank details for electronic payments. The missing documentation includes:

• PAN (Permanent Account Number)
• Contact details and mobile numbers
• Bank account details
• Specimen signatures

Shareholders falling under these categories will not receive dividend payments until they provide the required documentation to the company's Registrar and Share Transfer Agent.

Dividend Withholding Details

The company provided specific examples of withheld dividend payments in its communication:

The dividend amounts will be released immediately after shareholders complete the KYC update process and provide requisite bank details.

Update Process for Shareholders

Balrampur Chini Mills has outlined different procedures based on how shares are held:

Demat Form Holdings

Shareholders holding shares in dematerialized form must contact their respective Depository Participant (DP) to update KYC and bank details.

Physical Form Holdings

For physical share certificates, shareholders need to submit documents to KFin Technologies Limited (Unit: Balrampur Chini Mills Limited) at their Hyderabad office. The company accepts updates through:

• Hard copies (self-attested and dated)
• Electronic mode via registered email ID with digitally signed documents
• Web portal at https://ris.kfintech.com

Required Documentation

Shareholders must submit specific forms available on the company's website:

• Form ISR-1: For KYC details update with supporting documents
• Form ISR-2: For banker attestation of signature with cancelled cheque
• Form SH-13 or ISR-3: For nomination update or opt-out

The company emphasized that dividend payments will only be processed electronically once all required information and documents are properly updated with the registrar.

Balrampur Chini Mills Limited (BCML), a leading sugar producer in India, has reported a robust performance for the second quarter of fiscal year 2026, despite seasonal weakness typically associated with this period. The company's Board of Directors has declared an interim dividend of INR 3.50 per share, amounting to a total payout of INR 70.70 crore (including taxes).

Key Highlights

• Improved volumes and realizations in Q2 FY26
• Upward revision in power tariffs contributing positively to profitability
• Expected 7-8% increase in cane crushing for the upcoming season
• Steady progress on INR 2,800 crore PLA (Polylactic Acid) project

Financial Performance

BCML's performance in Q2 FY26 was marked by improvements in both volumes and realizations. The company benefited from upward revisions in power tariffs, which made a positive contribution to its overall profitability.

Dividend Declaration

The Board of Directors has declared an interim dividend of INR 3.50 per equity share. This translates to a total payout of INR 70.70 crore, including taxes, demonstrating the company's commitment to shareholder returns.

Operational Outlook

For the upcoming sugar season, BCML is anticipating a 7-8% increase in cane crushing volumes. This increase is expected to improve fixed cost absorption across the company's sugar, power, and ethanol businesses.

PLA Project Progress

BCML continues to make steady progress on its INR 2,800 crore Polylactic Acid (PLA) project, which represents a significant step in the company's forward integration and value addition strategy. Key updates include:

• INR 1,093 crore invested as of October 31, 2025
• INR 570 crore funded through debt, with the balance from internal accruals
• Construction activities advancing well
• Market development initiated through trading of imported PLA
• Commercial production targeted to commence in October 2026

Management Commentary

Vivek Saraogi, Chairman and Managing Director of BCML, stated, "We have delivered a healthy performance in a seasonally weak quarter, marked by improvement in both volumes and realizations. The PLA project marks a significant milestone in our growth journey, diversifying our product portfolio and offering eco-friendly alternatives to conventional plastics, in alignment with Government's sustainability objectives."

Future Outlook

BCML remains focused on operational excellence and disciplined investment to strengthen its growth trajectory. The company is optimistic about the potential of its PLA project, which is expected to diversify its product portfolio and align with the government's sustainability objectives.

As the sugar industry navigates challenges related to ethanol pricing and export quotas, BCML's management expressed hope for positive developments in government policies to support the sector's profitability and sustainability.

Investors and stakeholders will be keenly watching BCML's performance in the coming quarters, particularly as the PLA project nears completion and the company continues to adapt to evolving market dynamics in the sugar and ethanol sectors.