Britannia Industries proposes bonus debentures

28 May 2009

Britannia Industries plans to issue one bonus debentures of Rs 170 each for every shares held in the company.  These debentures will be secured and redeemable at par on the third anniversary of the issue.  Britannia industries indicated that it intends to apply for listing of these debentures on NSE and BSE. The debentures would carry interest rate not exceeding 8.5% per annum, and they will be considered as a deemed dividend as per Income tax act.   The dividend distribution tax will be borne by the company.  


The issue and allotment of debentures will entail Rs 406.2 crore and dividend distribution tax will be about Rs 69 crore.  The total amount of Rs 475.20 crore will be utilized from the company’s general reserve. Britannia will now make necessary applications to SEBI and on receipt of approval, it will also apply to Kolkata High court for its direction to convene a meeting of shareholders of seek their consent. crackcrack
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