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For hedging strategy expecting 20% acceptance ratio, should I sell September future and hold the shares and future position till settlement
or
sell July future and square off after record date and again sell it when tender window gets open and square off after settlement?

For hedging you can do both methods as u say. But I think in August settlement done.
Another thing
Difference between equity & Fut. Is high. 3-5rs gape good as 3rs dividend on july 15.
I done same thing 2 days before. Bought equity shares and sold July future. But i did Trading at 5rs difference between Equity and fut.

You can wait for decrease gape between equity and future prices or

Do trading just before 2 days from ex-date ( 14 july ) . Thn squre of next day after record date ( 15 july ).
In this method you may get loss of 1-3 rs only of difference between prices.

If you do hedge you will get loss becoz futures are trading in discount you will get 3 loss in July and 7 rs loss in Aug