Colombo, 31 August 2026 – Maharaja Foods PLC (CSE: PQ00296080) has announced its recommendation for a final dividend of Rs. 0.10 (Ten Cents) per Ordinary Share for the financial year ended 31st March 2026. This significant update, shared with the Colombo Stock Exchange (CSE) today, outlines that the dividend will be satisfied in the form of a Scrip Dividend, pending approval from shareholders at the forthcoming Annual General Meeting.
The decision was made by the company’s Board of Directors via a Circular Resolution dated 28th August 2026, signaling a strategic move to reinvest cash within the business while still rewarding shareholders. Scrip dividends, which involve issuing new shares instead of cash, are often utilized by companies looking to strengthen their financial position or fund growth initiatives.
Key Details of the Proposed Scrip Dividend
According to the announcement, the gross dividend entitlement stands at Rs. 0.10 per Ordinary Share. After the application of a 15% Withholding Tax (WHT), the net dividend entitlement for shareholders will be Rs. 0.085 per Ordinary Share. These dividend entitlements will be fulfilled through the issuance of new, fully paid Ordinary Shares of Maharaja Foods PLC.
The company has provided specific financial particulars regarding the scrip dividend:
- Type of Dividend: Final Scrip Dividend
- Gross Dividend per Ordinary Share: Rs. 0.10
- Applicable WHT: 15%
- Net Dividend per Ordinary Share: Rs. 0.085
- Consideration at which Shares are to be issued: Rs. 16.00 per Share
- Closing Share Price as at 25th August 2026: Rs. 16.00 per Share
- Value of Reserves to be Capitalized: Rs. 11,687,500.00
- Number of New Ordinary Shares to be issued: 730,468
- Relevant Proportion of Shares: 1 new Ordinary Share for every 188.2354873861 existing Ordinary Shares held.
Notably, the consideration price for the new shares matches the closing share price as of 25th August 2026, ensuring that the issuance reflects recent market valuation.
Conditions and Future Steps
The proposed Final Scrip Dividend is contingent upon several crucial approvals and compliance measures:
- The approval of the company’s shareholders at the upcoming Annual General Meeting.
- Approval in principle from the Colombo Stock Exchange for the issue and listing of the new Ordinary Shares.
- Compliance with all applicable statutory and regulatory requirements.
Maharaja Foods PLC has confirmed that its Board of Directors has duly carried out the Solvency Test, as mandated by Section 57 of the Companies Act No. 07 of 2007 (as amended), affirming the company’s financial capability to undertake this distribution.
The new Ordinary Shares issued under this scrip dividend will rank pari passu in all respects with the existing issued Ordinary Shares, with the exception of any rights, dividends, or other distributions for which the record date precedes the allotment date of these new shares. Further details concerning the XD Date, Record Date, proposed allotment date of the new Ordinary Shares, and other relevant timelines are expected to be announced by the company in due course. Shareholders should also note that the Share Register of the company will not be closed for the purpose of this proposed Scrip Dividend.
This move reflects Maharaja Foods PLC’s commitment to shareholder returns while prudently managing its capital structure in the dynamic Sri Lankan business landscape.
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