Nestlé India Pushes Dividend Date to July 16 Amid AGM Shuffle

Nestle India announced on Wednesday that it has moved the record date for its final dividend payment from July 15 to July 16.

New Record Date for Dividend
The company’s Board had previously set a final dividend of ₹8.5 per share for the fifteen months ending March 2024. The new record date will decide who will receive this dividend. The change is due to the 65th Annual General Meeting (AGM) being rescheduled to July 8 for administrative reasons. If approved at the AGM, the dividend will be paid to eligible shareholders from August 6.

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Ex-Dividend Date Information
Usually, shares trade ex-dividend either on or a day before the record date. On this date, the stock price typically does not include the value of the upcoming dividend, indicating who is entitled to receive the dividend payment.

New Appointment and Royalty Fee Decision
Nestle India’s Board also approved Sidharth Kumar Birla as an Additional Director and Independent Non-Executive Director starting June 12 for a five-year term. Additionally, the Board decided to continue paying the royalty fee to its Swiss parent company, Nestle, at the current rate of 4.5%.

Royalty Fee Proposal Rejected
Last month, Nestle India’s proposal to increase the royalty payment to its parent company was rejected by public shareholders. About 70.8% of them voted against the hike, which under Indian law, classifies as a related party transaction, barring controlling shareholders from voting.

Financial Performance
For the recent third quarter, Nestle India reported a net profit of ₹934 crore for the quarter ending in March, which is a 27% increase compared to last year. The company’s revenue from operations grew by 9% year-on-year to ₹5,268 crore.

Stock Performance
On Friday, Nestle India shares closed slightly lower at ₹2,533.05 on the NSE, down by 0.35%.