“2,200% yield in ten years, and this 100-year-old brand still has moats”
Varun Berry, Managing Director, is a fervent believer. He sees two critical elements working in the company’s favour that are impossible to find in any of its competitors. This year, to commemorate the company’s 100th anniversary, 50 new goods are in the works.
If you had kept onto a few shares where companies had a competitive edge and profit growth on their side, you might have gained crores on a Rs 10,000 investment ” Every company has a lifespan. In addition to this lifespan, it is important to determine a company’s high profit-growth phase and longevity. Stock prices are mainly a reflection of the company’s fundamental value. So, if we want to see a multifold increase in stock prices, we must invest in companies that are seeing a multifold growth in earnings.”
What do these figures mean for the average investor? The main conclusion we can get from this data is that if someone had invested in stocks in the initial days of Britannia, they may have become extremely wealthy. This is when the importance of share recovery becomes clear. According to newly revealed statistics from Britannia, it has the largest amount of unclaimed shares or unclaimed dividends among Indian businesses.
What is the basis of this unclaimed dividend?
People typically invest their money in a range of firms to reduce the risk of losing money. This looks to be helpful to the public, yet individuals periodically forget about their small donations and do not realise the advantages. The bought shares have remained inactive for years, with no one to claim them. When elderly people buy stock, they may neglect to identify an heir to the shares before dying. Businesses may have unclaimed dividends or shares as a result of this.
IEPF unclaimed dividend: Any person whose unclaimed or underpaid money has been transferred by the firm to the IEPF authorities may collect their reimbursements.
In case of the death of shareholder, one can opt for the option of transfer of shares on death. When a shareholder dies, his right to his shares passes to whoever inherits them under his will or intestacy. The rights of the dead shareholder will be handled by his or her executors (if a will exists) or administrators of the estate if the shareholder died intestate. It is critical to provide share certificate information. The physical share can be transferred by the issue of duplicate shares certificate.
Status of Unclaimed Shares of Britannia
Between 1998 and 2001, the firm’s revenues rose at a compound annual rate of 16 per cent compared to the market, while operating profits reached 18 per cent.  More recently, the company has grown at a pace of 27 per cent each year, compared to the industry’s growth rate of 20 per cent. Biscuits currently account for 90% of Britannia’s yearly sales of Rs 22 billion. Britannia is one of India’s 100 Most Trusted Brands, according to The Brand Trust Report. Britannia has a 38 per cent market share.
The details of unclaimed dividends of the shareholders can be checked in the following link:
|Announcement Date||Effective Date||Dividend Type||Dividend(%)||Remarks|
|30/03/2021||08/04/2021||Interim||6200%||Rs.62.0000 per share(6200%)Interim Dividend|
|05/10/2020||25/05/2021||Special||1250%||Rs.12.5000 per share(1250%)Dividend (Payment of dividend of Rs. 12.50 (Rupees Twelve and Fifty Paise) per every 1 (one) fully paid-up equity share of face value of Re. 1 (Rupee One) each by utilizing its accumulated profits)|
|05/10/2020||Interim||1250%||Payment of dividend of Rs. 12.50 (Rupees Twelve and Fifty Paise) per every 1 (one) fully paid-up equity share of face value of Re. 1 (Rupee One) each by utilizing its accumulated profits.|
|17/08/2020||26/08/2020||Interim||8300%||Rs.83.0000 per share(8300%)Interim Dividend|
|20/04/2020||29/04/2020||Interim||3500%||Rs.35.0000 per share(3500%)Interim Dividend|
|02/05/2019||01/08/2019||Final||1500%||Rs.15.0000 per share(1500%)Dividend|
|15/05/2018||27/07/2018||Final||1250%||Rs.25.0000 per share(1250%) Dividend.|
|25/05/2017||28/07/2017||Final||1100%||Rs.22.0000 per share(1100%)Dividend|
|20/05/2016||29/07/2016||Final||1000%||Rs.20.0000 per share(1000%)Dividend|
|21/05/2015||27/07/2015||Final||800%||Rs.16.0000 per share(800%)Dividend|
The most profitable investment ever would be just owning a Britannia share from the 1980s. As a result, recovering Britannia shares is a profitable endeavour. When you consider the number of revenues that will be created in the form of unclaimed dividends, spending small money to get the lost shares is not a big deal. To recover all of the lost shares, obviously, legal help would be necessary. Especially if the elderly person dies without claiming the money and their family is seeking it. All of the descendants may begin to ask for a share of the wealth. This is where legal counsel may help, as they can encourage the elderly to resolve the claim problem among family members. A legal professional can also help you file your claims with the IEPF.
If you want to avail Dematerialisation or Demat in short is the process through which an investor’s physical share certificate gets converted to an electronic format which is maintained in an account with the Depository Participant. Through this, you can get a demat of shares certificate of Britannia. Those people who have Britannia physical shares can choose the process of transfer of physical shares, liquidate them.
Filing a claim with the IEPF
Unclaimed payments and gains were previously transferred to the government, which would use them for public purposes in accordance with government policy. However, the government ultimately opted to create an unclaimed dividend fund into which firms’ lost or unclaimed shares may be placed. Any heirs of the funds, or anybody remembering a long-forgotten investment, may file a report with the fund’s management authority to recover their lost money and shares. The Government of India established the IEPF, or Investor Education and Protection Fund, with this goal in mind.
Investor Education and Protection Fund Provisions
The regulations for the Investor Education and Protection Fund were published in 2017 by the Ministry of Corporate Affairs (IEPF). According to the rules, any money left in the company’s unpaid dividend account for seven years with no claimant during that period must be transferred to the IEPF. The money, along with the interest for the same time period, must be transferred to the fund.
A claimant may only claim the transferred money after filing an application with IEPF. As a result, the IEPF has evolved into a one-stop-shop for investors seeking to file a claim for lost shares. It streamlined the process of requesting a refund for lost shares and allowed investors to reclaim their long-lost investment.
In the case of lost shares, you should send the following documents to the company/registrars: affidavit, indemnity & surety bond, original copy of FIR of police complaint reporting a loss of share certificates, and voucher copy of advertisement released in the government gazette publication regarding loss of share certificates.
Let’s go through how to have lost shares or unclaimed dividends from Britannia shares transferred to the IEPF. The method outlined in the following section is a set of fundamental requirements for a common investor to request a share return from the IEPF.
The Method for Claiming a Refunds of Lost IEPF Shares
Any individual whose equity, unclaimed dividend, matured deposits, matured debentures, application money due for refund or interest thereon, sale proceeds of additional shares, redemption proceeds of preferred stock, or other property has been transmitted to the Fund may assert the shares or apply for restitution under the regulations of section 124 sub-section (6).
Step 1: Claim to Authority
- A claimant must submit an IEPF Form-5 to MCA detailing their particulars, firm, and shares to be claimed.
- Particulars of the Applicant Specifics of the Shares to be Claimed
- Company Specifics
- Specifics on the amount claimed
- Aadhaar or PIO Card No. (in the case of NRI/foreigners)/Passport/OCI
- Deposits and securities are broken down by year.
- Details of the Aadhar-linked bank account (in which refund of claim to be made).
Step 2: Claim to Company
After completing the online refund form, the claimant should submit it to the Nodal Officer of the relevant firm, together with attachments such as indemnification bonds, original receipts and certificates linked to matured deposits or debentures, and so on. These will assist the firm in verifying the claim.
The following documents are required:
- Original Physical Share Certificate/bond/Debenture Certificate
- Indemnity Bond with claimant signature
If the claim is for more than Rs.10,000, a non-judicial Stamp Paper of the value specified by the Stamp Act must be utilised.
If the claim does not exceed Rs.10,000, it can be completed on plain paper. In the case of a share return, the amount specified by the Stamp Act must be stamped on a non-judicial Stamp Paper.
- Advance Stamped Receipt (original) with the claimant’s and two witnesses’ signatures
- A copy of the claimant’s Aadhaar card
- Print off a completed claim form (IEPF-5) with the claimant’s signature.
- Copy of acknowledgement
- Cheque Cancelled
- Passport, OCI, and PIO card copies (for foreigners and NRI)
Step 3: From Corporation to Authority
A business shall create a claim verification report and send it to the authority in the manner prescribed by the authority within 15 days of receiving the claim form and evidence. To carry out the claim verification procedure, the company must choose a nodal person.
The Nodal Officer is entirely responsible for the conduct of any officer designated as Deputy Nodal Officer: If a business fails to nominate a Nodal Officer, each of its directors is assumed to be a Nodal Officer and is responsible for any failure to comply with the requirements of these regulations.
Step 4: Claim Grant by Authority
The claim will be awarded to the claimant when the authorities have verified the papers and form supplied by the company.
Step 5: Verification report to the Authority
Within 30 days after receiving the claim form, the business must submit to the Authority a verification report in the manner required by the Authority, along with any documents provided by the claimant. Please keep in mind that sharing certificate information is quite important.
In addition to the e-verification report, the Company shall submit a scanned copy of both sides of the original physical share certificate or original bond, deposit, or debenture certificate/s that have been lawfully cancelled and certified:
If the claimant has claimed equities, the regulating body will order that a refund be sent into the claimant’s Demat account. If money is found, it will be sent to the claimant’s bank account. Typically, the authority settles disputes within 60 days after receiving the verification report from the firm.
Time: The Authorities shall consider any application for reimbursement of any claim under this regulation that has been duly validated by the relevant company before 60 days of receipt of the industry’s verification report.
Kindly Do Not Send an Incomplete Request
If the verifying authority finds that the application is incomplete or that another document is required to complete the verification, an email will be sent to the claimant explaining the flaws in the given form or data, as well as any further required papers. The claimant is then required to produce the refurbished papers or another set of documents within 15 days after getting the notification email from the authorities. If the papers are not submitted on time, the authority may reject the claim application due to their inadequacy.
All documentation needed by the verifying authority must be addressed to the verifying nodal officer of the firm. Ensure that the documents are provided to the officer within 15 days.
In conclusion, you understood the whole process of collecting unclaimed money or earnings from a company. Britannia shares have soared in value over the last several decades. As a result, if you lay claim to shares that have been lost or unclaimed for a long period, the current value of such shares will be substantially higher. This is analogous to discovering unforeseen treasure buried on your ancestors’ land.
Therefore, reclaiming this lost capital and recovering shares requires the filing of evidence as well as compliance with all of the requirements listed above. Hiring a law firm to handle all of the documentation and filing for you is a straightforward answer to this time-consuming operation. These firms may also guide you through the whole process, making the work of recovering shares easier. So, without further ado, if you have any concerns or questions concerning the recovery of shares/transfers, choose a reputable legal firm with specialists and seek aid in reclaiming your unclaimed investment.