Britannia is certainly not the only India’s MNC company with the world to conquor. I agree with you on the caution. With such strong sentiments and thoughts on Britannia, would like to know your disclosure if you are or were invested and sold because of this issue or any other reasons.
Disc. Invested from lower levels. Cautious and evaluating if any major action needed.
Any guarantee given by Britannia for these two companies would definitely appear in its disclosures/financial statements. We need to watch out for that.
I’m not expert on this, but I would assume that (1) The company would need some approval - Board and in many cases shareholders’ approval- for issuing such BG (2) as a listed entity it would be also reported to stock exchanges.
Experts/experienced investors may chip-in.
Disc: Invested, no transactions in last 30 days.
2 Likes
Will this appointment have any effect? I dont think so.
Invested.
2 Likes
Company declared Interim Dividend @ 6200% i.e., Rs. 62 per
Equity Share of face value of Re. 1
e9e0242c-1842-4017-aef2-890746a1b372.pdf (388.9 KB)
2 Likes
Britannia announces a concall for Tuesday 27th April 2021.It was to be held on Wednesday 28th but has been preponed.
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=98d86438-68ee-4f64-bb78-5864aebe336c
2 Likes
issue and allot by way of bonus, 1 fully paid-up Debenture of the face value of INR 29/- and pay dividend of INR 12.50/- per every one fully paid-up equity share of face value of INR. 1/- by utilizing its Accumulated Profits.
This is in addition to the INR 62/- dividend paid on 26th Apr
I was unable to understand what it exactly meant. Did that mean existing investors like me will be getting free bonus shares / bonus shares by paying 29 to brittania / this is completely unrelated to us and we should be concerned with dividend only.
you will get 12.5/- as CASH into your bank account and you will get 1 Debenture into you demat account, Debentures you can sell immediately if you want to realise gains, debenture are like a debt instrument that also have a coupon value (interest)
1 Like
Thanks, these debenture are non convertible to equity and get automatically encashed into linked bank account at maturity?
What should long term investors ideally do with such debentures…hold till maturity or sell immediately and think of it as dividend? Views invited
yes interest and maturity payment is credited to the bank account. These debentures appear as Britannia-N[1-9] and are traded on exchanges, so if one wishes can be exited quickly, gains are taxed if exited before maturity. These are like debt instruments with defined upside, in my case I am not a big fan of debentures and I will exit quickly to inject the cash back into equity (britannia or other stocks)
They will be visible if they are remitted to your Demat account. Try adding BRITANNIA-N2 and see.
You should be able to see them in your Demat Account balance on either CDSL or NSDL.
Also I got a note from Zerodha earlier this week:
"Hi Gurjot,
Britannia Industries Ltd. had announced a bonus debenture issue in the ratio 1:1. You hold xx debentures of Britannia in your demat account.
The debentures were credited to your demat account on June 4th, 2021 and will be visible in your Console holdings. The debentures will show up on Kite after they are listed on the exchanges."
Basically these debentures are yet to be listed and once they are you should be able to see them in your trading account to buy/sell.
3 Likes
From 20th July these debentures will be tradable in exchange.
2 Likes
Britannia Quarterly Results June 2021
Earnings Call
Annual Report 2020-21
https://www.bseindia.com/xml-data/corpfiling/AttachLive/04cd45f7-d504-494c-bad0-b3e0d8553f05.pdf
Had posted a similar news on ITC’s Thread a few days ago. Interesting to see Britannia get into this as well.
2 Likes
1 Like
The move by the illustrious father to hand over management of different Wadia entities to professionals is a welcome move.
Now each of the entities should be directed to stand on their own, and run in a purely commercial manner. This will be in the ultimate best interests of the shareholders and result in value appreciation for Britannia, than the mere 7 times sales, that it is now valued at, notwithstanding that it has more than a 100 year history, and that the top two companies in the industry take more than 80% of the profits.
1 Like
If I am not wrong I have seen strong comments from you on intercompany deposits, corporate governance for Britannia sometime back…this time it is a strong positive comment…can you clarify your stand on Britannia and also if you previously held or nor hold Britannia? I think this would help those reading your thoughts, including myself…
Disc. Invested. Not a buy/sell recommendation