Nestle India shares jump 3% as shareholders reject royalty hike
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Shares of Maggi-maker Nestle India on Saturday rose 3% to the day's high of Rs 2,514.65 after the MNC's shareholders rejected a proposal to increase royalty payments to its Swiss parent Nestle. Results of a remote e-voting by shareholders show that 57.18% of the votes were cast against the proposal for increasing royalty from 4.5% to 5.25% in a staggered manner over 5 years by making an increase of 0.15% per annum. Earlier in April, Nestle India board had approved paying the royalty fee to its parent company Nestle S.A. "This will ensure ongoing access to the entire capabilities of Nestle...and will enable Nestle India to continue to deliver long-term sustainable profitable growth and Create Shared Value for society and its shareholders," Nestle India chairman and managing director A Helio Waszyk had said earlier. Nestle SA had asked two years ago for a review of the two decades old royalty rates.Nestle India has a Gener...