Piramal Enterprises Limited (PEL) has a diversified portfolio of pharmaceuticals and financial lending business based on the wholesale lending model. The company has made heavy growth in the financial sector in the last few decades and came out as a big player in the Indian financial market. The company through its retail lending business gives housing loans. It is also working on creating a multiproduct based retail lending platform for its customers to streamline the lending process. The company also owns IndiaRF or India Resurgence Fund as part of its financial business. IndiaRF is a distressed asset investment platform specializing in investments related to equity and debt portfolio of non-real estate sectors. The Piramal Pharma Limited (PPL) is its pharma subsidiary offering services and products related to medicine manufacturing. The company manufactures over the counter medicinal products in India and has an integrated development and manufacturing facility.
The above amount doesn’t have the value of the associated dividend with it. Piramal in its years of operation has paid its investors some really handsome dividends and thus if we add those the net value of returns will become huge.
Source for Data: https://in.investing.com/equities/piramal-healthcare-company-profile
In the following table, we have sourced the history of dividends paid by Piramal Enterprises in the last two and a half decades. Investors can calculate the respective dividends for the investment mentioned in the previous section easily. The resultant amount will be near to one crore. This shows how profitable it is to recover old shares of Piramal is as they can be worth millions in today’s scenario.
|Announcement Date||Effective Date||Dividend Type||Dividend (%)||Remarks|
|11/05/2020||16/07/2020||Final||700%||Rs.14.0000 per share (700%) Final Dividend|
|26/04/2019||18/07/2019||Final||1400%||Rs.28.0000 per share (1400%) Final Dividend|
|28/05/2018||19/07/2018||Final||1250%||Rs.25.0000 per share (1250%) Dividend|
|12/05/2017||21/07/2017||Final||1050%||Rs.21.0000 per share (1050%) Dividend|
|09/03/2016||17/03/2016||Interim||875%||Rs.17.5000 per share (875%) Interim Dividend|
|07/05/2015||28/07/2015||Final||1000%||Rs.20.0000 per share (1000%) Dividend|
|05/05/2014||15/07/2014||Final||2625%||Rs.52.5000 per share (2625%) Dividend|
|03/05/2013||15/07/2013||Final||875%||Rs.17.5000 per share (875%) Dividend|
|06/05/2011||28/07/2011||Final||600%||Recommended dividend of Rs.6 per Equity Share of face value of Rs.2/- (i.e. @ 300%) & One-time Special Dividend of Rs.6 per Equity Share of face value of Rs.2/- (i.e. @ 300%).|
|26/04/2005||24/06/2005||Final||150%||AGM & Right Issue of Equity Shares|
|31/03/2000||Interim||65%||Revised From 06/05/2000 Revised % 12.00|
If you are not new to the Indian financial market, then you must be aware of the term IEPF. However, most of the investors have little to no knowledge of the IEPF rules and regulations that companies have to follow. Before we move on to understanding the rules of funds transfer stated by IEPF, we must understand the need for Introducing IEPF.
The Government of India in 2016 came up with IEPF which was considered a major reform at that time considering the lack of a statutory body to address the issue of unclaimed dividends. The IEPF Authority was responsible for handling the claims for unpaid dividends older than seven years. This was needed as earlier there were no rules and regulations for companies regarding the unclaimed dividends that are left dormant with them. due to this, funds used to remain dormant for years with the companies. Some companies used to transfer their unclaimed funds to the government for use in public welfare schemes. Thus, the government decided to regulate these huge dormant funds by forming a statutory body to look after them. The IEPF rules were formed and stated the conditions for the transfer of money to the fund.
In this section, we will get into Piramal Enterprises annual reports and documents related to unclaimed shares and dividends before moving to the part of how to claim the money from IEPF and why an investor should hire a consultant to claim the money.
As per the financial report of the company for the year 2019-20, IEPF holds 0.31% of Piramal’s shares. This data alone is enough to demonstrate how much of Piramal’s dormant shares are lying with IEPF. The company has transferred a huge no. of shares and dividends in all its previous financial years to IEPF. In the following table which has been sourced from the company’s annual report of 2019-20, the last dates for transfer of funds for seven financial years have been shown. Investors are requested to take note of these dates to make their claims accordingly.
|Financial Year||Date of declaration of Dividend||Due date for transfer|
|2012-13||July 25, 2013||August 25, 2020|
|2013-14||July 25, 2014||August 25, 2021|
|2014-15||September 6, 2022||August 6, 2015|
|2015-16 (Interim)||March 9, 2016||April 9, 2023|
|2016-17||August 1, 2017||September 1, 2024|
|2017-18||July 30, 2018||August 30, 2025|
|2018-19||July 30, 2019||August 30, 2026|
Apart from giving the data on funds transferred to IEPF and the related dates for future transfer, the company also releases individual documents every with details of the shareholders of unclaimed dividends in Piramal enterprises. This must be done by the company as per the IEPF rules.
An investor can simply check these documents to know the status of their dividends (whether they have been transferred to the IEPF or not). For the convenience of our reader, we have given the direct link to those documents containing details of every shareholder whose unclaimed shares and dividends have been transferred to the IEPF.
The reports of the unclaimed dividend shown above give a complete overview of the transferred shares of Piramal. Investors can the details of their dividends form these reports or the website of the company or contact the Nodal officer of Piramal Ltd. Mr Bipin Singh, (Company Secretary). They can also mail the officer on [email protected] for any query related to their investment. For any other information regarding unclaimed stocks of Piramal, and a shareholder can visit: https://www.piramal.com/investor/shareholder-information/unclaimed-dividend/
Before we move on to tell you why is it necessary to hire a Financial/legal consultant to claim dividends from IEPF, we must first understand the process of claiming dividends. The process of claiming dividend form IEPF involves four basic steps.
Now you must have understood how tricky and time consuming the claim process can get. This is one of the main reasons why it is recommended that the claimant should hire a financial consulting firm with legal experts who can handle the claim process on his/her behalf. This reduces the burden on the claimant and makes the process smooth too. Also, legal experts can help the claimant in proving their ownership of shares in case of any dispute. The experts also ensure that the application is error free and compliant with the norms of IEPF.
To conclude we can only say, recovery of Piramal Shares could prove to be a profitable thing for investors and if they find old shares of this company then they must claim them from IEPF authority.
Disclaimer: The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.