FMCG major Nestle India on Monday declared an interim dividend of Rs 2.75 per share of the face value of Rs 1 each for the financial year 2024-25.

“The Board declared an interim dividend of Rs 2.75 per equity share of face value of Rs 1 each for the financial year 2024-25 on the entire issued, subscribed and paid-up share capital,” the company said in a filing.

The interim dividend for the financial year 2024-25 will be paid on and from August 6, 2024, along-with the final dividend for the 15 months’ financial year ended March 2024.

The company has already fixed July 16 as the record date. The dividend will be paid to those members whose names appear on the register of members of the company or on the register of beneficial owners maintained by the depositories as on record date.

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.Further, Nestle India’s shareholders have approved for continuation of 4.5% royalty payment to its Swiss parent Nestle. Nearly 99% of the shareholders approved the proposal to continue the current royalty fee payment.Earlier, the company had scrapped the hike in royalty fee to its parent following rejection by the shareholders.About 70.8% of public shareholders voted against the increase. Under Indian regulations, the potential change would be classified as a related party transaction, which means that controlling shareholders were not allowed to vote.

In the recent March quarter, Nestle India reported a net profit of Rs 934 crore, higher by 27% year-on-year, while revenue from operations increased 9% year-on-year to Rs 5,268 crore.

On Monday, Nestle India shares closed 1% higher at Rs 2,600 on NSE.

MUMBAI – The board of directors of Nestle India will consider the proposal of sub-division of shares of the company of face value Rs 10 each on October 19. This proposal will be considered along with the earnings for the September quarter.

Stock split, particularly in high value stocks, helps in improving liquidity in the counter while also rewarding stakeholders. The “Maggi” noodles maker has been one of the best performing Nifty 50 stocks in 2023. It has given nearly 14% returns year-to-date, and touched a 52-week high of Rs 23,395.35 in July.

Apart from a stock split, the board will also consider and recommend second interim dividend for the year 2023, the company said in an exchange filing.

If approved by the board and the shareholders, the record date for the second interim dividend will be November 1, the company said.

In April, Nestle paid an interim dividend of Rs 27 a share, and a final dividend of Rs 75 a share for 2022. Last month, Nestle had received approval from the National Company Law Tribunal to transfer the entire credit balance of Rs 837 crore of the company’s general reserves to retained earnings.

In trade on Tuesday, shares of Nestle India ended nearly 1% down at Rs 22,315.25 on the NSE.

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