Nestle India revises record date for dividend payment, scraps increasing royalty fee to parent
Nestle India on Wednesday said it has changed the record date for the payment of the final dividend to July 16 from July 15 earlier.
Earlier, the company's Board had recommended a final dividend of Rs 8.5 per for the fifteen months ending March 2024. The record date will determine who will be eligible to receive the said dividend payment.
The record date has been shifted by a day as the Board, for administrative reasons, revised the date of the 65th AGM to July 8. If the proposed dividend is approved by members at the AGM, the same would be paid to eligible shareholders on and from August 6.
Shares of companies usually trade ex-dividend on the day or a day before the record date. When a company goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment. An ex-dividend date also dictates which shareholders are eligible to receive the dividend payment.
The company's board has also approved the appointment of Sidharth Kumar Birla as an Additional Director and Independent Non-Executive Director of the company for a term of five consecutive years with effect from June 12.
Further, the board of Nestle India gave nod to continuation of payment of general licence fees (royalty) at the current rate of 4.5% to its Swiss parent Nestle.
Last month, shareholders in Nestle India rejected a company proposal to increase royalty payments to its Swiss parent Nestle. About 70.8% of public shareholders voted against the increase.
Under Indian regulations, the potential change would be
