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Published on 5/08/2019 3:30:58 PM | Source: Dion Global Solutions Ltd

Nestle India gains 4% on good Q2 results, dividend bounty

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Shares of Nestle India rallied 4 per cent on Monday at the Bombay Stock Exchange after the company reported a good April-June quarter (Q2CY19) results. The fast moving consumer goods (FMCG) company also declared a dividend of Rs 203 per share, including a special dividend of Rs 180 per share.

The dividend of Rs 203 per equity share includes an interim dividend comprising of Rs 23 per equity share for 2019, and a special interim dividend of Rs 180 per equity share out of the accumulated profits of previous years. It will be paid on and from 23 August 2019. “The distribution will be out of the current treasury position after adequately providing for future requirements.

This cash payout will reduce the future generation of 'other income' and will improve the overall capital efficiency,” Nestle India said in a press release. Buoyed by the development, shares of the company surged as much as 4 per cent in the intra-day trade at Rs 11,912 a piece on BSE. On NSE, the shares of the company were trading at Rs 11,706.15 apiece, up by 2.58 per cent. Meanwhile, the BSE Sensex was at 36,664.89, down by 453.33 points or 1.22 per cent at