Varun Berry-led Britannia Industries has announced an interim dividend of 7200% i.e, Rs 72 per equity share of the face value of Re 1 each for 2022-23.
The record date for determining the eligibility of shareholders for payment of interim dividend is April 13, 2023, Britannia Industries said in an exchange filing.
This is Britannia’s first interim dividend for FY23, and is also the highest dividend payout by the confectionary company in the past three years. Previously, Britannia had approved a dividend of Rs 83 in August 2020.
In June 2022, the company had paid a dividend of Rs 56.5 per share for financial year 2022, and also announced an interim dividend of Rs 62 per share in April 2021.
Britannia's interim dividend is subject to deduction/withholding of applicable taxes and will be paid within the stipulated timelines as prescribed under law, Britannia said in an exchange filing.
The dividend payout by Britannia comes as it sold its 49% stake in its wholly-owned subsidiary Britannia Dairy Pvt. Ltd. as part of its joint venture agreement with French company Bel SA for around Rs 262 crore in November last year.
Britannia accrued a one-time gain of Rs 376 crore from the sale of 49% stake in the joint venture firm, and the dividend payment could be to share this profit.
The high dividend payout is likely to act as a booster shot for the Britannia stock in near-term. In the last 5 days, Britannia share price has risen nearly 3%.
In the last 1 year, Britannia stock has given positive returns to the tune of 30%, whereas Nifty 50 has given negative returns of over 2%.
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