Britannia Inds to issue bonus debentures, pay dividend

The biscuit maker on Monday (5 October) said its board has approved issuing bonus debentures and payment of dividend to reward its shareholders.

The board of Britannia Industries at its meeting held on 5 October 2020, approved issuing unsecured, non-convertible, redeemable fully paid-up debenture of the face value of Rs 29 by way of bonus to the shareholders of the company for one paid-up equity share of face value of Re 1 each, by utilising its general reserve.

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.

The company 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, it 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.

Keeping with its philosophy of conservative cash management and being mindful of the challenging business environment, the company is of the view that it would be prudent to retain liquidity in the company. Accordingly, the company has proposed, to distribute such funds amongst its shareholders, by means of fully paid up bonus debentures and distribution of dividend through a scheme of arrangement with its members, it added.

There will be no change in the shareholding pattern of the company pursuant to the scheme, the firm said.

The FMCG major's consolidated net profit surged 118.30% to Rs 542.68 crore on 26.4% rise in net sales to Rs 3,384.46 crore in Q1 June 2020 over Q1 June 2019.

Britannia Industries is one of India's leading food companies. The company's product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk and yoghurt.

Shares of Britannia Industries were down 0.50% at Rs 3,809.25 on BSE. The scrip has galloped 81.34% from 52-week low of Rs 2,100.55 hit on 23 March 2020.

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