ITC Dividend Distribution: Understanding the Process and Waiting Periods

Are you a shareholder of ITC Limited and are waiting for your dividend? If yes, you're not alone. In this article, we will delve into the process of dividend distribution at ITC, the announcement dates, and the waiting period until you receive your share.

ITC Annual General Meeting and Dividend Distribution Schedule

To understand the dividend distribution timeline, it's essential to know when the Annual General Meeting (AGM) is held and when the dividend will be distributed. For ITC, the 109th AGM was held on August 11, 2021. Following this, the company announced that the dividend would be distributed on August 13, 2021. This means that any shareholder expecting to receive a dividend would have to wait for about two months from the AGM date.

Dividend Declaration and Distribution on the Register of Members

On the ITC website, under the section 5, the company mentioned that the Register of Members of the Company was closed from July 8 to July 9, 2020, for the purpose of payment of dividends. This closure period ensures that only those shareholders whose names appear in the Register as of that date are eligible to receive the dividend.

The dividend, if declared, was to be paid to shareholders on September 8, 2020, to those who were registered on the Register of Members as of July 9, 2020, or through mandates, provided that the provisions of Section 126 of the Companies Act 2013 are honored. For dematerialized shares, the dividend would be based on beneficial ownership as of July 7, 2020, as per the details furnished by the National Securities Depository Limited and Central Depository Services India Limited.

Therefore, if you were holding ITC shares on July 9, 2020, in good standing, you should have received the dividend of ?10.15 per share on September 8, 2020.

Board of Directors' Recommendation and Approval

The Board of Directors of ITC recommended a dividend payout of ?10.15 for the financial year 2020. However, this recommendation is subject to the approval of the shareholders at the 109th Annual General Meeting held on September 4, 2020. This approval ensures that the dividend is paid to shareholders only after their consent.

Based on the understanding of the management, the dividend would be distributed to shareholders until July 7, 2020, if the dividend is approved. Therefore, any transaction or holdings before this date would be eligible, provided they are registered.

First Dividend Date and Confirmation

The first dividend date mentioned is July 6, 2020, but based on the actual distribution process, the dividend was confirmed to be paid out on or before August 6, 2021. It's important to note that the actual date may vary based on the declaration and approval process.

Frequently Asked Questions

Q1: When will I receive the dividend?
A1: The dividend will be distributed after the Annual General Meeting. If the dividend is approved, it will be paid to eligible shareholders after the closure of the Register of Members.

Q2: What is the closure period for the Register of Members?
A2: The Register of Members is typically closed for a short period to ensure accurate records for dividend payments. For ITC, this period was from July 8 to July 9, 2020.

Q3: How do I check if I am eligible for the dividend?
A3: You should check your registration details with the company's records. Shareholders whose names appear in the Register of Members on the closing date are eligible for the dividend.

For more detailed information, please visit the official ITC website or contact their customer support.

Understanding the dividend distribution process and the key dates is crucial for any shareholder. By following up and checking the official announcements, you can ensure that you receive your dividend in a timely manner.