Britannia to consider stock split; issue bonus debentures of Rs 721 crore

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Kolkata | Published: August 7, 2018 4:17:34 AM

The FMCG major is currently the market leader in biscuits in India by value with around one-third share of the market. The company is also planning to launch 50 new products this year to celebrate 100 years of its operation.

Biscuit maker Britannia Industries, which is celebrating 100 years of operation, on Monday said it will decide a stock-split proposition in a board meet to be held later this month.

Biscuit maker Britannia Industries, which is celebrating 100 years of operation, on Monday said it will decide a stock-split proposition in a board meet to be held later this month.

The FMCG major has also decided to issue over 12 crore bonus debentures of nearly Rs 721 crore to its shareholders.

“A meeting of the board of directors to Britannia Industries will be held on August 23 at Mumbai, inter alia, to consider the sub-division of equity shares of the company of the face value of Rs 2 each,” the company said in a stock exchange filing.

In a separate filing, the company said its board of directors has recommended and approved issuance of redeemable non-convertible debentures as bonus debentures of Rs 60 in the ratio of one bonus debenture for every one equity share held by the shareholders on a record date. The issuance of bonus debentures is subject to the approval of the Kolkata bench of the National Company Law Tribunal (NCLT).

Addressing the shareholders at the company’s 99th Annual General Meeting (AGM) here, Britannia Industries chairman Nusli N Wadia said, “Today, we are in a position in terms of management to be able to look at acquisitions if they make sense.” Wadia unveiled a new logo of the company.

The company is currently the market leader in biscuits in India by value with around one-third share of the market. India’s biscuit market stands at Rs 32,000 crore and is projected to grow at a CAGR of 11.27% in value terms during 2018-2022, according to the company’s latest annual report.

The company was planning to launch 50 new products this year to celebrate its 100 years of operation, managing director Varun Berry said. Wadia said there was a plan to invest around Rs 300 crore to set up a dairy plant.

The company may, however, relocate its dairy project from Maharashtra to Andhra Pradesh as the Maharashtra government has not yet finalised the incentive scheme.

“We planned the (dairy) project in Maharashtra and waited for over one year for finalising the incentive. Unfortunately, they (the state government) have not done it…We are looking at shifting because the Maharashtra government already delayed long enough… If it does not get finalised, then we have to move,” Wadia told reporters on the sidelines of the AGM.

Asked whether the company has any discussion with the Andhra Pradesh government, he said, “Of course, many times.”

Meanwhile, the company reported over 19% year-on-year rise in its consolidated net profit at Rs 258 crore in the first quarter of this fiscal from Rs 216 crore in the same period last fiscal. During the June quarter of FY19, revenue from operations was at Rs 2,544 crore against Rs 2,340 crore in the corresponding period of FY18.

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