Colgate-Palmolive shares fall on higher royalty payout talk

Shares of Colgate-Palmolive, largest selling of toothpaste in India, fell as much as 2% on Monday on buzz the company is likely to increase royalty payment to its overseas parent company to 8% from 5%.

The stock which opened flat at Rs 1,330 declined to Rs 1,303 after the rumours surfaced. However, a company spokesperson denied the rumour.

"There has been no change in the royalty agreement with the parent company and the information is not true," said the spokesperson.

The Indian entity has paid royalty of Rs 113 crore and Rs 141 crore during FY11 and FY12 respectively at a rate of 5% to the parent company.

The stock ended at Rs 1318.35, down by 0.87%.



Contributed by Rajesh Mascarenhas