Previously, the company’s board had recommended a final dividend of Rs 8.5 per share for the 15 months ending March 2024. The record date will determine who is eligible to receive this dividend.
The record date shifted by one day as the Board of Directors changed the date of the 65th Annual General Meeting of Shareholders to July 8 for administrative reasons. If the proposed dividend is approved at the Annual General Meeting, the dividend will be paid to eligible shareholders from August 6 onwards.
A company’s shares usually trade at an ex-dividend price on or before the ex-dividend date. When a company goes ex-dividend on a particular date, its shares will not be worth the next dividend. The ex-dividend date determines which shareholders are eligible to receive the dividend.
The company’s board also approved the appointment of Siddharth Kumar Birla as an additional director and independent non-executive director of the company for a term of five years, starting June 12. Nestle India’s board also approved the continuation of the payment of general license fee (royalty) to Swiss parent Nestle at the current rate of 4.5%. Last month, Nestle India shareholders rejected the company’s proposal to increase royalty payments to Swiss parent Nestle. Around 70.8% of public shareholders voted against the increase. Under Indian regulations, the potential change would be classified as a related party transaction, so controlling shareholders cannot vote.
Nestle India recently reported third-quarter net profit for the quarter ended March rose 27 percent from a year earlier to Rs 9,340 million, while operating revenue rose 9 percent from a year earlier to Rs 52,680 million.
On Friday, Nestle India shares closed down 0.35 per cent at Rs 2,533.05 on the NSE.
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