100-year gift: Britannia to issue bonus debentures of Rs 7.2 billion

Firm to launch 50 products with a refreshed logo and split stock.

 

Companies News : On its centenary year, the board of Britannia Industries has approved issuance of secured redeemable non-convertible debentures as bonus debentures of Rs 60 in the ratio of one such debenture for every equity share. Also, it has proposed a share split that the board will decide in the next meeting on August 23.

Speaking at the company’s annual general meeting on Monday, Britannia Chairman Nusli Wadia said the company would incur Rs 7.2 billion for issuance of bonus debentures and the total payout to shareholders, including bonus, would be more than Rs 10 billion. These debentures will be issued out of the Rs 25.15-billion balance in retained earnings, which was available as on March 31, 2018.

Britannia Bonus Shares

Later, in a filing with BSE, Britannia said it would be issuing 0.12 billion bonus debentures of Rs 7.2 billion. “The firm will utilise balance in retained earnings to the extent of Rs 8.69 billion, including deemed dividend tax,” the filing said. These debentures will be listed in the BSE and NSE after getting nod from the National Company Law Tribunal.

According to the company, there will be no change in the paid-up equity capital of Britannia Industries pre and post issue of bonus debentures.

This apart, it has recommended a dividend of 1,250 per cent, which amounts to Rs 25 per share having a face value of Rs 2 each, bringing the total dividend payout to Rs 3.62 billion.
Varun Berry, Britannia’s managing director, said 50 products would be launched this year to celebrate 100 years of the...continue reading

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News Source: BS

Britannia Industries hits new high; stock surges 70% in one year

Since May 14, the stock gained 13% after the company reported a healthy 25% year on year jumped in its consolidated net profit and 13% growth in revenue in March quarter.

Share Market News » Shares of Britannia Industries were trading higher for the fifth straight day, hitting a new high of Rs 6,189 per share, up 1.5% on the BSE in intra-day trade on Friday. Stock of the leading food company was up 4% as compared to 1.2% decline in the S&P BSE Sensex during the week. In past one year, Britannia Industries has rallied 70% from Rs 3,638 against 14% rise in the benchmark index.

Since May 14, in past one and half months, the stock gained 13% after the company reported a healthy 25% year on year jumped in its consolidated net profit and 13% growth in revenue in March quarter. On comparison, the Sensex was down nearly 1% during the same period. During the quarter revenue growth was backed by the positive momentum in the market. Premiumization and increase in distribution footprints have resulted in better realization, improved profitability and robust volume growth especially in the rural India.

“Britannia has posted consistently better results on QoQ as well as YoY basis. We believe that with a management focus on growing its portfolio with new innovative products in the premium segment, capturing new markets and geography, increasing reach in the distribution channel, focus to increase penetration in rural areas, untapped opportunities in the domestic and international market, etc. will help it to grow faster in the market,” said analysts at KRChoksey Shares and Securities. The brokerage firm recommends ‘accumulate’ rating on the stock with 12 month target price of Rs 6,576.

Britannia is one of the leading players in the Indian biscuit industry, with market share of about 33% (in value terms). Product portfolio is diversified across all seven biscuit categories: glucose, Marie, cookies, crackers, cream, milk, and health. Also, its brands (Good Day, Tiger, Marie, Nutrichoice, and Milk Bikis) have strong recall.
At 11:50 am; Britannia Industries was trading 0.69% higher at Rs 6,139, as compared to 0.81% rise in the Sensex. A combined 49,897 equity shares changed hands on the counter on the BSE and NSE so far.

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