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Last Updated : Feb 06, 2019 12:56 PM IST | Source: Moneycontrol.com

Jubilant Foodworks reverses decision to pay 0.25% royalty to promoters

The company did not state the reason behind the change in its stance on royalty payment

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Jubilant FoodWorks, which operates Dominos Pizza and Dunkin' Donuts chains across the country, has decided not to pay a corporate brand royalty of 0.25 percent to its promoters.

"Jubilant Enpro Pvt (a promoter group company) has decided not to charge a corporate brand royalty of 0.25 percent of the consolidated revenue of the company and the same stands withdrawn," the company said in a BSE notification.

The company did not state the reason behind the change in its stance on royalty payment.

On February 5, the company's board had decided to pay a corporate royalty to its promoter group, Jubilant Enpro Pvt, for use of the 'Jubilant' brand.

Promoter group Jubilant Bhartia told CNBC-TV18 on February 5 that it would not be able to comment on the story at the moment. The Bhartia family holds 45 percent of Jubilant FoodWorks.

The decision has added further pressure on the company's stock that was already reeling under selling pressure on account of alleged profiteering under Goods & Service Tax (GST).

Jubilant FoodWorks has been found guilty of not passing on GST-cut benefit of Rs 41.42 crore on sale of some pizza products and has been directed to deposit illegal gains with the government.

The stock is trading at Rs 1,319.60 on the BSE at 9:21 am, up over a percent from its February 5 close.
First Published on Feb 6, 2019 09:21 am
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