Let's Start Recovering Your Lost Shares & Forgotten Wealth
Posted By ARA | 01st Jan 2022
Do you own shares in Asian Paints Limited, perhaps forgotten or untouched for years? You might be sitting on a goldmine. Before diving into claiming these unclaimed shares and dividends through the Investor Education and Protection Fund (IEPF), let's explore why pursuing this opportunity is crucial.
Asian Paints Ltd., one of India's top paint manufacturing companies, has an illustrious history. Incorporated in 1945 as a private company, it went public in 1982, listing on the stock exchange. With a group turnover of ₹202.1 billion, it operates in 15 countries and boasts 26 paint manufacturing facilities globally.
Despite challenges like the COVID-19 pandemic, Asian Paints Ltd. remained profitable, providing dividends to its shareholders.
Asian Paints Limited, one of India's leading paint manufacturers, has been a star performer in the stock market since its listing. For instance, in 2000, its share price was a mere Rs. 15. As of October 2023, it stood at an impressive Rs. 3,197 without considering bonuses or stock splits.
When a company opts for a stock split, it's typically due to a substantial rise in its share price, making it challenging for individual or small-scale investors to participate. This split involves increasing the number of available shares in the market while proportionally reducing their price. This manoeuvre ensures that the overall market capitalization remains unaltered.
Imagine you bought 100 shares in 2000 at Rs. 15 each, investing Rs. 1,500. Due to bonuses and stock splits, those 100 shares have now multiplied to 2,400 shares.
Bonus shares are essentially free shares that a company provides to its shareholders. In simpler terms, it's like a gift from the company to its shareholders, and these bonus shares come at no additional cost to the shareholders.
With a current market price of Rs. 3,197 per share, your total investment has ballooned to approximately Rs. 77 lakhs. Yes, you read that right. A Rs. 1,500 investment in 2000 could be worth around Rs. 77 lakhs today, including bonus shares and dividends.
If this applies to you, wouldn't you want to claim your unclaimed shares and dividends from Asian Paints Limited?
Government regulations mandate that dividends on shares unclaimed for seven or more consecutive years must be transferred to the IEPF by the respective company. This transfer is compulsory if dividends remain unclaimed for seven years. Previously, companies sometimes took advantage of shareholders' unawareness, retaining unclaimed dividends. The government established the IEPF to address this issue, requiring companies to transfer such shares after seven years.
The Indian government introduced the Investor Education and Protection Fund (IEPF) 2016 under the Companies Act 2013. The IEPF serves multiple purposes, including refunding unclaimed shares, matured deposits/debentures, and unpaid dividends. It also promotes investor awareness and covers legal expenses incurred during litigation.
The Indian government introduced the Investor Education and Protection Fund (IEPF) 2016 under the Companies Act 2013. The IEPF serves multiple purposes, including refunding unclaimed shares, matured deposits/debentures, and unpaid dividends. It also promotes investor awareness and covers legal expenses incurred during litigation.
It's important to note that IEPF authorities should respond to the verification report sent by the company within 60 days. Be prepared for a lengthy process; obtaining refunds from the IEPF can take over 8-12 months due to the IEPF's single office in Delhi.