If you have just found some of the old forgotten stocks of Nestle India in your father’s name or you have old certificates of investment in Nestle from the 90s then this blog is for you. Stocks of Nestle India Limited were floating at a price of more than Rs. 16, 000 per share in the stock market as of February 2021. If you haven’t kept a note on share growth of Nestle in the past two decades, then you might be surprised to believe that even a small amount invested in Nestle in 1995 is worth millions today.
History of the Nestle India Ltd. Shares
Nestle India Ltd. is a Fast-Moving Consumer Goods (FMCG) giant incorporated in the year 1959. It’s a Large Cap corporate with a total market capitalization of Rs. 1,72,477.59 Crore. Till 31st December 2018, the corporate has made an earned revenue of Rs. 11, 294.65 Crores. The key revenue segments/products of the company that have contributed to this growth are as follows:
During the COVID pandemic itself, the stock price has increased by almost Rs. 3, 500. In the quarter finished in September 2020, it has reported sales of approximately Rs. 3, 525.41 Crores which amounts to a 15.91% increase from its previous quarter’s numbers. Nestle India Limited has earned a net profit of Rs. 587.09 Crores after deducting the tax from its gross profit in the last quarter only.
Nestle India is known for giving its stockholders healthy dividends along with bonus shares. Till 2020, the company has announced a total of 60 dividends for its investors that amounted to Rs. 1,292.5 per share. And in 2020 alone, Nestle has declared a dividend of Rs. 196 per share. Since 1983 it has also issued bonus shares 5 times.
Calculation Related to Shares Price Growth
Suppose an investor has bought 600 shares of Nestle India Ltd. under his name in January 2003.
Now the price of a single share of Nestle in 2003 is 539.60. So the total invested amount becomes 600 shares x 539.60 Rs. = Rs. 323760.
Now, the price of 1 share as of February 2021, is Rs. 60. Thus, the value of your shares as of February is,
Rs. 16101.60 x 600 shares = Rs. 9660960 (Ninety Six Lakhs Sixty Thousand Nine Hundred and Sixty).
We have not added the price to dividends to the above amount and it is only showing the amount corresponding to its price growth till February 2021.
The amount of Dividend received till 2020 (from 2001) is,
Rs. 1, 292.5 x 600 shares = Rs. 7, 75, 500
The amount of Dividend received in the last fiscal year,
Overview of Investor Education and Protection Fund
The Govt. started this scheme to teach the investors and protect them from losing their rights over the funds and therefore the shares. When the investors won’t ditch their shares, they won’t get transferred to the Govt.’s IEPF Fund alongside the unclaimed dividend amount. They could be utilized by the Govt. for public welfare. Since the matters of individuals forgetting their stockholding in small companies were increasing, the govt. decided to line up the IEPF. Now, the stock traders and investors could approach the Govt. body and claim their dividends or ask them to refund their long-forgotten shares. In this way, IEPF protected the investors’ interests while spreading awareness regarding dormant funds and stocks at the same time.
Unclaimed Dividend Transferred to IEPF by Nestle
Nestle India encourages its members to lay claim to the dividends on time from the corporate itself, to avoid its transfer to the IEPF Account. the corporate sends individual letters, through posts and other modes of communication, to form their shareholders conscious of their holdings within the company. Nestle India does this to stop its members from browsing the rigorous and tiresome procedure of recovering the cash and shares from the IEPF Authority. The fund manager follows this exhaustive procedure to make sure that the stocks are transferred to their real owner/s. When stocks remain unclaimed for such a long period (7 years+), they are susceptible to fraudulent transfer by someone doing identity theft.
Due to this scrutinization, the complex procedure takes time. Thus, Nestle India recommends its stockholders to lay claim to dividends from corporate time to time because it is less time consuming and a relatively simple process. To lay a claim on the dividends, the investors need to apply to the Registrar or the agency of the corporate. However, if your shares are already transferred to the IEPF, then you can approach the Nodal Officer after filing the IEPF form. Balasubramaniam Murli (Nodal Officer), or the Deputy Nodal Officer, Pramod Kumar Rai, are appointed by Nestle to handle such claims. Investors can write an email to Nodal.officer@IN.nestle.com to contact the Nodal/ Deputy Nodal Officer appointed by Nestle India.
Dividends and Shares of Nestle India Ltd. in IEPF
As per the Annual Report of Nestle in 2019-2020, all the unclaimed dividends up to the fiscal year 1995-1996 which remained unpaid and unclaimed with the corporate were transferred to the Central Government’s revenue account.
From the fiscal year 1996-1997 to 2012-2013, all the unclaimed dividends which remained deserted with the corporate, alongside the shares, were transferred to the IEPF Account founded by the Central Government. The unclaimed stocks for 2012-13 have been transferred to IEPF in 2020.
In the previous fiscal year, Nestle India Ltd. had transferred an amount of Rs. 98,24,178 worth of unpaid and unclaimed dividend to the IEPF account of the Central Government. within the previous year itself, the corporate has transferred 4,806 shares within the IEPF which amount to Rs. 8,65,08, 000. In total, the IEPF Account holds 0.1% of the entire shareholding of Nestle India, i.e., 95, 575 shares.
As stated above, the procedure to say the refund of unclaimed dividends and lost shares from the IEPF Authority may be a difficult and technical process. Hiring a legal professional can assist you to save lots of yourself from this tedious task. Your jurist/advocate will look out for all the work and formalities required to file the refund application to the IEPF. Your lawyer will make sure that there are not any mistakes in your application so that the authority approves it without any single objection.
Sometimes, the shareholder dies with none nominee, and he also forgets to place shares in his will. In such a case, all the relations of the deceased can claim their right to the deceased’s stocks. These disputes could take an extended time to get settled and thus hiring a jurist is of utmost importance. Hiring a lawyer is going to be extremely helpful if your shares are stuck during a family dispute. A legal professional or a legal firm will represent you altogether in such disputes associated with the ownership of the shares.
Gather information regarding your dividends accumulated thus far, alongside your stockholding within the company, and file an application to say your dividend from Nestle India Ltd. by applying to its Nodal Officer. If your dividend amount and shares are already transferred to the IEPF, it is recommended that you hire a legal consultant as soon as possible and apply to the IEPF Authority to get the refund of the dividend and recover the transferred shares.
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