FMCG major Britannia to issue bonus debentures and payment of dividend

Bakery and dairy products major Britannia Industries on Monday said its board has approved issuing bonus debentures and payment of dividend to reward its shareholders in such difficult and unprecedented times due to coronavirus pandemic.

The board of the company at its meeting held on Monday approved issue of a non-convertible, redeemable fully paid-up debenture of the face value of Rs 29 by way of "bonus to the Members of the Company" for one paid-up equity share of face value of Re 1 (rupee one) each, by utilising its general reserve, Britannia Industries said in a regulatory filing.

Besides, the board has also approved payment of dividend of Rs 12.50 per every one fully paid up equity share of face value of Re 1 each by utilising its accumulated profits.

Elaborating the rationale behind the steps, Britannia Industries said upon taking into consideration its capability to generate strong cash flow and the accumulated profits being more than what is needed to fund the its future growth, "the company is of the view that these excess funds can be optimally utilised to reward its members in such difficult and unprecedented times by way of distribution".

Accordingly, the company "has proposed, to distribute such funds amongst its members, by means of fully paid up bonus debentures and distribution of dividend through a scheme of arrangement with its members", it added.

The company, however, said keeping with its philosophy of conservative cash management and being mindful of the challenging business environment, it is of the view that it would be prudent to retain liquidity in the company.

Shares of Britannia Industries on Monday settled at Rs 3,828.45 on BSE, up 0.49 per cent from the previous close.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel