Why You Must Recover Unclaimed Nestle India Shares from IEPF By FCS Shweta Gupta


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,

Rs. 196 x 600 shares = Rs. 1, 17, 600

Sources:

https://trendlyne.com/equity/Dividend/NESTLEIND/930/nestle-india-ltd-dividend/

https://economictimes.indiatimes.com/prices.cms?fromdate=01%2F01%2F2000&todate=28%2F02%2F2007&frequency=Monthly&companyid=13330&numberofdmw=100&exchangeid=50&pagenumber=0&pagesize=30&Go=Go 

https://in.investing.com/equities/nestle-historical-data?end_date=1614424050&interval_sec=monthly&st_date=791145000 

Status of Dividends Per Year by Nestle India

In the following table, you will find the status of dividends transferred by Nestle every year since 2007. This will give you a history of this stock in the last 24 years. 

 

Announcement Date

Effective Date

Dividend Type

Dividend(%)

Remarks

16/02/2021

29/04/2021

Final

650%

Rs.65.0000 per share (650%) Final Dividend

15/10/2020

29/10/2020

Interim

1350%

Rs.135.0000 per share (1350%) Interim Dividend

13/02/2020

11/06/2020

Final

610%

Rs.61.0000 per share (610%)  Final Dividend

22/11/2019

10/12/2019

Interim

550%

Rs.55.0000 per share  (550%) Third Interim Dividend

02/08/2019

09/08/2019

Special

1800%

Rs.180.0000 per share (1800%) Special Dividend

23/07/2019

09/08/2019

Interim

230%

Rs.23.0000 per share (230%) Second Interim Dividend

16/04/2019

06/05/2019

Interim

230%

Rs.23.0000 per share (230%) Interim Dividend

14/02/2019

30/04/2019

Final

250%

Rs.25.0000 per share (250%) Final Dividend

28/11/2018

12/12/2018

Interim

500%

Rs.50.0000 per share (500%) Third Interim Dividend

25/07/2018

10/08/2018

Interim

200%

Rs.20.0000 per share (200%)  Second Interim Dividend

02/05/2018

16/05/2018

Interim

200%

Rs.20.0000 per share (200%) Interim Dividend

14/02/2018

16/05/2018

Final

230%

Rs.23.0000 per share (230%) Final Dividend

24/11/2017

11/12/2017

Interim

330%

Rs.33.0000 per share (330%) Third Interim Dividend

18/07/2017

02/08/2017

Interim

150%

Rs.15.0000 per share (150%) Second Interim Dividend

15/05/2017

19/05/2017

Interim

150%

Rs.15.0000 per share (150%) Interim Dividend.

15/02/2017

19/05/2017

Final

230%

Rs.23.0000 per share (230%) Final & A.G.M

25/11/2016

09/12/2016

Interim

160%

Rs.16.0000 per share (160%) Third Interim Dividend

21/07/2016

05/08/2016

Interim

120%

Rs.12.0000 per share  (120%) Second Interim Dividend

02/05/2016

18/05/2016

Interim

120%

Rs.12.0000 per share (120%) Interim Dividend

12/02/2016

18/05/2016

Final

185%

Rs.18.5000 per share (185%) Final Dividend (date has been revised from 18/05/2016 to 19/05/2016)

27/11/2015

11/12/2015

Interim

160%

Rs.16.0000 per share (160%) Second Interim Dividend

04/05/2015

19/05/2015

Interim

140%

Rs.14.0000 per share (140%) Interim Dividend

13/02/2015

19/05/2015

Final

125%

Rs.12.50 per share (125%) Final Dividend

28/11/2014

08/12/2014

Interim

80%

Rs.8.00 per share (80%) Third Interim Dividend

03/09/2014

15/09/2014

Interim

300%

Rs.30.00 per share (300%)  Second Interim Dividend

26/04/2014

15/05/2014

Interim

125%

Rs.12.50 per share (125%) Interim Dividend

14/02/2014

15/05/2014

Final

125%

Rs.12.50 per share( 125%) Final Dividend

18/10/2013

01/11/2013

Interim

180%

Rs.18.00 per share (180%) Second Interim Dividend

08/07/2013

31/07/2013

Interim

180%

Rs.18.00 per share (180%) Interim Dividend

15/02/2013

25/02/2013

Interim

125%

Rs.12.50 per share (125%) Third Interim Dividend

07/12/2012

12/12/2012

Interim

180%

Rs.18.00 per share (180%) Second Interim Dividend

17/07/2012

01/08/2012

Interim

180%

Rs.18.00 per share (180%) Interim Dividend

14/02/2012

21/03/2012

Final

125%

 

24/11/2011

12/12/2011

Interim

270%

Second Interim Dividend

21/04/2011

21/04/2011

Interim

90%

 

18/02/2011

21/04/2011

Final

215%

Interim dividend of Rs. 9.00 per Equity Share for the year 2011, paid on and from May 06, 2011, with Final Dividend for 2010 worth Rs. 12.50 per Equity Share.

19/10/2010

03/11/2010

Interim

270%

Second Interim Dividend

19/02/2010

23/04/2010

Final

215%

Final Dividend Rs. 12.50 (125%) per share + Interim Dividend of Rs. 9/- (90%) per share.

15/10/2009

04/11/2009

Interim

270%

Second Interim Dividend

09/03/2009

29/04/2009

Final

210%

210% Dividend (120% Final Div. & 90% Interim Div.) & A.G.M.

31/10/2008

14/11/2008

Interim

220%

(2nd Int.Div.145% & Special Div.under Sch. of Arrangement 75%)

04/03/2008

23/04/2008

Final

110%

Total Dividend is Rs. 11 i.e Final Dividend for 2007 Rs. 2.50 & Interim Dividend for the year 2008 Rs. 8.50.

26/11/2007

13/12/2007

Interim

240%

Second Interim Dividend

06/03/2007

20/03/2007

Interim

65%

(15% Third Interim Dividend for the year 2006 + 65% Interim Dividend for the year 2007) The Board did not recommend any final dividend for 2006.

05/03/2007

20/03/2007

Interim

15%

(15% Third Interim Dividend for the year 2006 + 65% Interim Dividend for the year 2007) 

Source: https://economictimes.indiatimes.com/nestle-india-ltd/infocompanydividends/companyid-13330.cms 

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. 

An investor can check the status of their unclaimed dividend, declared by Nestle, from https://www.alankit.com/searchmodule/search

For more information, visit https://www.nestle.in/sites/g/files/pydnoa451/files/2020-05/Nestle-India-Annual-Report-2019.pdf

Dividend transferred to the IEPF

According to Nestle’s Annual Report 2019-2020, it has transferred the following amount of unclaimed dividends to the IEPF during the fiscal year of 2019:

Particulars

Amount of Dividend (in ?)

Date of Transfer

Final Dividend 2011

28, 83, 288

23rd May 2019

1st Interim Dividend 2012

33, 43, 770

13th September 2019

2nd Interim Dividend 2012

35, 97, 120

17th January 2020

Total

98, 24, 178

-

Source: https://www.nestle.in/sites/g/files/pydnoa451/files/2020-05/Nestle-India-Annual-Report-2019.pdf

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. 

95, 575 shares x Rs. 18, 000 = Rs. 1, 72, 03, 50, 000 (Total Amount) .

Is Legal Help Needed?

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. 

To Summarize…

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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