UltraTech Cement shareholders get 1-year SEBI window for physical shares

Details of the SEBI Dematerialisation Window

UltraTech Cement has informed the stock exchanges about a one-year special window initiated by the Securities and Exchange Board of India (SEBI). This window, running from February 5, 2026, to February 4, 2027, is designed to help shareholders convert their physical share certificates into dematerialised (demat) form. It specifically caters to investors who had submitted transfer requests before April 1, 2019, but faced documentation issues, or those with new requests accompanied by original certificates. All shares processed through this special initiative will be issued in dematerialised form and will be subject to a one-year lock-in period from the date of dematerialisation.

Importance for Shareholders and Transparency

This move by SEBI aims to resolve outstanding physical shareholding issues, enhance transparency, and ensure all investors are brought onto a digital platform for better security and ease of management. For shareholders holding physical shares, this offers a critical, time-bound opportunity to convert their holdings into electronic form, making them tradable and easier to manage. UltraTech Cement, as part of its compliance and investor service, is facilitating this process as directed by the regulator.

Regulatory Push Towards Digital Shares

SEBI has been progressively mandating the dematerialisation of shares, making it compulsory for transfers to be in demat form since April 1, 2019. This measure aims to prevent fraud, reduce risks like forgery or loss of physical certificates, and streamline shareholding records. UltraTech Cement itself boasts a high level of dematerialisation, with approximately 99.67% of its total equity share capital held in demat form as of December 31, 2025. This special window, however, targets the remaining small fraction and specific legacy cases.

Key Changes for Shareholders

• Shareholders with eligible physical shares can submit their certificates for dematerialisation through this special window.
• The process ensures that converted shares are electronically held, improving security and transferability.
• All converted shares will be locked in for one year, preventing immediate trading after dematerialisation.
• This provides a final opportunity for investors with older physical holdings to comply with regulatory requirements.

Company Faces Significant GST Demands

In parallel with this regulatory update, UltraTech Cement has recently faced significant Goods and Services Tax (GST) demand notices. These include a substantial ₹782.2 crore notice issued in December 2025 and other demands totaling over ₹100 crore in early 2026 from various state authorities. The issues cited relate to alleged Input Tax Credit (ITC) misuse and tax liabilities. UltraTech Cement has stated its intention to contest these demands, projecting no material financial impact. Nevertheless, these notices highlight ongoing regulatory scrutiny concerning the company's tax practices.

Industry Context

UltraTech Cement operates in a competitive sector alongside peers like Ambuja Cement, Shree Cement, ACC Limited, and Dalmia Bharat. While this dematerialisation window is a company-specific regulatory compliance initiative, other listed entities also continue to manage their shareholding structures and comply with SEBI's directives on dematerialisation. The overall trend across the industry is towards complete digital shareholding.

Key Dates and Figures

• Special Window Period: February 5, 2026 – February 4, 2027
• Physical Shares Transfer Discontinuation Date: April 1, 2019
• Demat Holdings as of Dec 31, 2025: 99.67% of total paid-up equity share capital

Looking Ahead

• Investor participation in the special dematerialisation window.
• The volume of physical shares successfully converted during the window.
• Any further updates or clarifications from SEBI or UltraTech Cement regarding the process.
• Monitoring the resolution of the company's ongoing GST-related disputes.