Jubilant FoodWorks, Life Sciences promoters make an about-turn on royalty

Analysts had said Jubilant's decision to pay royalty to the promoters would be a clear case of the firm paying royalty twice

Promoters of food service major Jubilant FoodWorks and pharma company Jubilant Life Sciences decided not to charge royalty from the two firms within hours of announcing that they would. 

On a day of high drama that saw the Jubilant FoodWorks stock price fall 6.45 per cent on the BSE, the late-night announcement has come as a huge surprise. 

Speculation was rife through Tuesday that Jubilant FoodWorks would pay a royalty of 0.5 per cent of net sales to the Bhartia family, who hold 45 per cent in the firm, for use of the Jubilant name. This was clarified in the