Colombo, 11 September 2026 – Maharaja Foods PLC (CSE: MFP) today announced that its Board of Directors has recommended a final dividend of Rs. 0.10 per ordinary share for the financial year ended 31st March 2026. This dividend, to be paid out from the company’s retained earnings, will be distributed as a scrip dividend, subject to the crucial approval of its shareholders.
The decision was formally communicated to the Colombo Stock Exchange (CSE) by Chart Business Systems (Private) Limited, the Company Secretaries to Maharaja Foods PLC, in accordance with Rule 7.1.g(ii) of the CSE listing rules. The proposal outlines the issuance of new ordinary voting shares to existing shareholders instead of a cash payment, a common method for companies to conserve cash while still rewarding investors and potentially increasing liquidity in the market.
Key Dates and Shareholder Approval
To facilitate this dividend, an Extraordinary General Meeting (EGM) has been scheduled to immediately follow the Annual General Meeting (AGM) on 25th September 2026. Shareholders will convene virtually to vote on the scrip dividend proposal. The company has already received “in principle” approval from the CSE for the listing of up to 730,468 Ordinary Voting Shares that would be issued through this scrip dividend.
Investors should note the following critical dates pertaining to the proposed dividend:
- Date of the General Meeting (EGM): 25th September 2026 (virtually, immediately after AGM)
- XD Date: 28th September 2026
- Record Date: 29th September 2026
Maharaja Foods PLC also clarified that the company’s Share Register will not be closed for the payment of this dividend.
Implications for Investors
A scrip dividend allows shareholders to increase their stake in the company without incurring transaction costs, effectively reinvesting their dividends. For Maharaja Foods PLC, this strategy supports capital retention which can be reinvested into business operations, expansion, or debt reduction, potentially strengthening its financial position in the long run. The issuance of new shares will slightly dilute the ownership percentage of existing shareholders who do not opt for the scrip dividend, but it also increases the total number of shares in circulation, which could impact market dynamics.
Shareholders are encouraged to attend the upcoming EGM to exercise their voting rights on this significant corporate action. The outcome of the EGM on 25th September 2026 will be a pivotal moment for Maharaja Foods PLC and its investor community.
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