Kolkata, Aug. 31 The shareholders of Britannia Industries Ltd approved a resolution related to a scheme for the issue of bonus debentures by drawing upon the general reserves of the company.
The board of directors of the company on May 27 proposed the scheme to restructure the company’s general reserves, created out of retained profits, as deemed dividend.
This would be done by distribution of Rs 406.13 crore from the general reserves through issue of secure fully paid bonus non-convertible debentures of Rs 170 each.
One such debenture would be issued for every equity shares of Rs 10 each held by a shareholder.
The scheme would have to be approval by the High Court.
According to the explanatory statement, the debenture certificates would be kept ready for delivery within three months from the date of allotment of debentures.
The debentures would carry an interest not exceeding 8.5 per cent and redeemable at the end of 36 months from the date of allotment.