The Hindu : HLL shareholders' nod for bonus debenture

Online edition of India's National Newspaper
Tuesday, Aug 13, 2002

Business

Business

HLL shareholders' nod for bonus debenture

MUMBAI AUG. 12. The shareholders of Hindustan Lever Ltd. (HLL) have, by an overwhelming majority, approved the company's revised bonus debenture scheme.

According to HLL, 99.99 per cent of the shareholders supported the proposed debenture scheme of the Bombay High Court convened meeting held on August 9.

As per the scheme, in addition to a bonus debenture scheme of Rs. 6 each per share, HLL will pay a special dividend of Rs. 2.76 per share as part of the scheme. The entire tax would be deducted out of the special dividend, ensuring that the face value of the dividend was uniform at Rs. 6, a company release said here today.

The interest on these debentures, redeemable after 18 months from the record date, would be 9 per cent.

After their issuance, HLL has offered to buyback the debentures — less than 1,000 debentures per original debenture holder on a first-come-first-served basis during the first 12 months commencing from the date of issue of debentures, the release said adding that a consortium, led by HSBC, will also offer a scheme to buyback the debentures at a rate to be determined by the consortium. — PTI

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