Vinati Organics Recommends Final Dividend of Rs 8.50 Per Equity Share

Vinati Organics Recommends Final Dividend of Rs 8.50 Per Equity Share​

Vinati Organics Limited announced the recommendation of a Final Dividend for its shareholders, setting the stage for potential payment following shareholder approval at the upcoming Annual General Meeting (AGM). The dividend is set at Rs 8.50/- per equity share, based on a face value of Re. 1/- each, and is subject to ratification by the shareholders.

The Board of Directors recommended this Final Dividend during its meeting held on May 12, 2026. As per the provisions of the Income Tax Act, 2025 (as amended by the Finance Act, 2026), dividends paid or distributed are taxable in the hands of the shareholders, necessitating tax deduction at source (TDS) upon payment if declared at the AGM.

The company has provided detailed guidelines regarding the TDS rate structure, which varies depending on the residential status and documentation provided by the shareholders.

Dividend Tax Deduction Structure​

Shareholders must adhere to specific requirements and submit necessary documentation to claim applicable tax exemptions or beneficial rates. The required TDS deduction rates are summarized below based on shareholder categorization:

Requirements for Tax Exemption and Beneficial Rates​

Vinati Organics has stipulated specific documentation requirements for various categories of shareholders seeking lower or nil tax deduction. These include:

• Insurance Companies: Documentary evidence qualifying them as an insurer under the Insurance Act, 1938, along with a self-attested copy of the PAN card.
• Mutual Funds and AIFs: Documentary evidence proving eligibility as specified under relevant sections of the Act, accompanied by registration documents and PAN cards.
• National Pension System Trust & Others: Submission of a declaration alongside supporting documentary evidence and a self-attested PAN card copy.

For Non-Resident Shareholders (including Foreign Institutional Investors and Foreign Portfolio Investors), tax withholding is required at 20% (plus applicable surcharge and cess). To avail benefits under the Double Taxation Avoidance Agreement (DTAA), non-resident shareholders must provide documents such as a Tax Residency Certificate (TRC) and relevant declarations certifying their residency status and lack of permanent establishment in India.

Key Deadlines and Compliance Notes​

Shareholders are strongly advised to submit all necessary details and supporting documents by July 25, 2026, to enable the company to determine and deduct the appropriate TDS rate.

The company noted that if tax is deducted at a higher rate due to the absence or defect in submitted documentation, shareholders have the option to file an income return as per the Act and claim an appropriate refund of the excess tax deducted. The company also stated that it reserves the right to reject documents found to be incomplete or inaccurate.

VINATIORGA Stock Price Movement​

Today, Vinati Organics Limited shares rallied to close at ₹1354.1, reflecting a strong gain of 3.90% in post-market trading. The stock saw considerable investor interest, as it finished the session having traded 139,232 shares.