Food and milk products major Nestle India may soon go for a buyback of shares. The company has informed the Bombay Stock Exchange (BSE) to that effect.
The board of the company has approved the proposal, prior to the 42nd annual general meeting (AGM) held here today.
A company spokesperson said this was "only an enabling provision for any future buyback and did not mean the entire floating share would be bought back, thereby delisting the company from the domestic stock markets". He added that a small chunk of shares will be bought back without giving the details.
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He said Nestle SA and its associate companies hold 51 per cent in Nestle India. Though there was a plan to buy out the shares of an Indian partner -- BM Khaitan -- holding around four per cent stake, it is yet to be acquired.
The AGM also approved a final dividend of Rs 6 per share. The company forecast a continued good market for FMCG companies provided no exceptional events disturbed the market.
Speaking at the AGM here, the company's chairman and managing director C M Donati said that the domestic sales volumes grew 15 per cent and profits were in line with expectations. He dispelled concern at a construed profit warning in the director's report for the coming year. However, he said the conditions were not favourable.