Nestle India surges on getting shareholders` nod for continuation of payment of royalty at existing rate to parent
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Nestle India is currently trading at Rs. 2615.60, up by 12.30 points or 0.47% from its previous closing of Rs. 2603.30 on the BSE.
The scrip opened at Rs. 2638.95 and has touched a high and low of Rs. 2638.95 and Rs. 2594.00 respectively. So far 13288 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 2770.75 on 02-Jan-2024 and a 52 week low of Rs. 2145.28 on 18-Aug-2023.
Last one week high and low of the scrip stood at Rs. 2638.95 and Rs. 2533.40 respectively. The current market cap of the company is Rs. 251076.17 crore.
The promoters holding in the company stood at 62.76%, while Institutions and Non-Institutions held 21.10% and 16.13% respectively.
Nestle India has received approval from shareholders for continuation of payment of royalty to parent firm -- Societe des Produits Nestle S.A. (Licensor) at the current rate of 4.5 per cent of the net sales.
Earlier in May this year, the shareholders of the company had rejected a proposal to increase payment of royalty to parent Societe des Produits Nestle S.A. by 0.15 per cent per year for the next five years thereby enhancing it to 5.25 per cent of net sales. Subsequently, last month the board of directors of the company at its meeting approved continuation of payment of general licence fees (royalty) at the existing rate of 4.5 per cent to Societe des Produits Nestle S.A. and recommended to the members of the company for their approval. The members of the company at its AGM (annual general meeting) held on July 8, 2024 have approved the ordinary resolution to continue the payment of general licence fees (royalty) at the existing rate of 4.5 per cent with 99.54 per cent of valid votes in favour and 0.46 per cent against it.
The company had sought approval from the shareholders for continuation of payment of general licence fees (royalty) at the rate of 4.5 per cent, net of taxes, of the net sales of the products sold by it to the licensor as per the terms and conditions of the existing General Licence Agreements (GLAs) with effect from July 8, 2024.
Nestle India is a subsidiary of Nestle S.A. of Switzerland, a vibrant company that provides consumers in India with products of global standards.
