Certain Indian companies offer discounts or benefits to shareholders, such as product discounts or special offers. Examples include ITC for FMCG products, Tata Motors for vehicles and Marico for its personal care products, enhancing shareholder value beyond financial returns.
Content:
- What Are Shareholder Discounts?
- Benefits of Shareholder Discounts
- Top Stocks That Provide Discounts On Their Products To Their Shareholders
- Eligibility Criteria for Shareholder Discounts
- How To Claim Shareholder Discounts?
- Are Shareholder Discounts Taxable?
- Stocks That Give Discounts To Shareholders In India – Quick Summary
- Stocks That Give Discounts To Shareholders In India – FAQs
What Are Shareholder Discounts?
Shareholder discounts are special benefits offered by companies to their shareholders, providing exclusive access to discounts, rebates, or perks on the company’s products and services. These rewards enhance shareholder value beyond financial returns like dividends or stock price appreciation.
Such discounts encourage brand loyalty, incentivize long-term investment and strengthen relationships between the company and its shareholders. By aligning shareholder interests with the company’s offerings, these benefits also serve as a unique promotional tool to increase engagement and market reach.
Benefits of Shareholder Discounts
Shareholder discounts offer unique perks that go beyond financial returns, enhancing value and fostering stronger connections. These benefits strengthen brand loyalty, encourage engagement and boost a company’s appeal, making shares more attractive to investors while supporting long-term stakeholder relationships.
- Enhanced Shareholder Value: Discounts provide added value to shareholders, complementing returns from dividends and stock performance, creating a holistic benefit package.
- Strengthened Brand Loyalty: By offering exclusive perks, companies cultivate loyalty among shareholders, encouraging them to become long-term stakeholders and brand advocates.
- Increased Engagement: Shareholder discounts create deeper engagement with the company’s products and services, fostering a direct connection between the brand and its investors.
- Boosted Market Appeal: Offering discounts can attract retail investors, making shares more appealing and potentially increasing demand for the company’s stock in the market.
Top Stocks That Provide Discounts On Their Products To Their Shareholders
- Bata Shareholder Discount: Bata, holding a 15% market share in India, offers shareholders an annual 20% discount on all purchases, with no minimum order, rewarding loyal investors for their support.
- IHCL Shareholder Discount: IHCL shareholders enjoy a 25% discount on food and beverages at Taj, Ginger, and Vivanta. The annual coupon requires no minimum spend, enhancing value across its iconic hotel and restaurant brands.
- Hawkins Cooker: Hawkins’ CEO announced a special scheme offering a 20% discount on existing products and 25% on newly launched items, marked yellow in the catalogue, enhancing shareholder benefits from 11 July 2024.
- Metro Brands: Metro Brand shareholders with just one share enjoy a 15% discount on Skechers, Clarks, and Crocs, with exclusive coupon codes for significant savings on their favourite footwear purchases.
- Raymond Shareholder Discount: Raymond shareholders receive a one-time annual coupon valid for a year, non-transferable, and capped at ₹5000. The coupon is exclusively for the registered shareholder, irrespective of shareholding quantity.
- Relaxo Footwear: Relaxo Footwear shareholders owning at least one share get a 30% annual discount via email. Coupons are redeemable online or at Relaxo stores across India.
- Titan Shareholder Discount: Titan shareholders enjoy a 10% discount on all products. Annual coupon codes are emailed post-AGM, typically in August or September, providing exclusive benefits to registered shareholders.
- Trident: Trident Group offers shareholders a 25% discount on mytrident.com, combinable with site-wide offers. Coupon codes and redemption instructions are emailed, providing exclusive savings on all e-commerce products.
Eligibility Criteria for Shareholder Discounts
To qualify for shareholder discounts, individuals must hold a specified number of shares in the company, often for a minimum duration. Companies typically announce these criteria through shareholder communications or annual reports, outlining eligibility thresholds and associated benefits.
Some companies may require registration of shares under specific investor categories or through company-designated platforms. Eligibility often varies by company policies and shareholders are advised to review the terms thoroughly to ensure they meet the requirements.
How To Claim Shareholder Discounts?
To claim shareholder discounts, shareholders must register their eligibility on the company’s official portal or submit proof of shareholding, such as a Demat account statement. Instructions are generally outlined in shareholder communications or investor services.
Once verified, shareholders receive a unique discount code or access to exclusive benefits. The process may also involve filling out forms, uploading required documents and following timelines set by the company to redeem the discounts successfully.
Are Shareholder Discounts Taxable?
Shareholder discounts are generally not considered taxable income if they are provided as non-monetary perks or reduced prices on products and services. However, certain monetary benefits could attract tax implications based on Indian tax laws.
Shareholders should review the company’s policy on discounts and consult tax professionals for clarity. Tax treatment can vary depending on the nature of the benefit and the applicable tax regulations in a given financial year.
Stocks That Give Discounts To Shareholders In India – Quick Summary
- Shareholder discounts are exclusive benefits like discounts, rebates, or perks on a company’s products or services, enhancing shareholder value alongside financial returns, fostering loyalty and increasing investor engagement.
- Shareholder discounts enhance value, boost brand loyalty, foster engagement and attract retail investors. These perks support stronger connections between companies and shareholders, promoting long-term investments and increasing market appeal.
- Companies like Bata, Titan, Hawkins Cooker, IHCL and Trident offer discounts to shareholders, providing added value and encouraging brand engagement while enhancing market presence and investor satisfaction.
- Eligibility often requires holding a specific number of shares for a minimum period. Companies announce criteria via shareholder communications and some may need registration under specific investor categories.
- Shareholders must register on official company portals or submit proof of shareholding, such as Demat account statements. Once verified, unique discount codes or benefits are provided for redemption.
- Non-monetary shareholder discounts are usually non-taxable. However, certain monetary perks may attract taxes. Shareholders should consult tax experts and review company policies for applicable tax implications.
Stocks That Give Discounts To Shareholders In India – FAQs
Companies like Bata, IHCL, Hawkins Cooker, Titan and Trident offer shareholder discounts, providing perks on their products or services to enhance shareholder value and engagement.
Yes, shareholder discounts boost investor interest by adding non-financial value, fostering loyalty and creating stronger ties between the company and its shareholders, making stocks more appealing.
Offering shareholder perks strengthens relationships, enhances loyalty, boosts engagement and differentiates companies in the market, potentially increasing investor demand and long-term retention.
Shareholder discounts are relatively uncommon in India, with only a few companies offering these benefits. However, such perks are gaining popularity as a unique investor engagement strategy.
Shareholder benefits are generally non-transferable and exclusive to registered shareholders. Companies specify policies regarding the usage and transferability of these perks in their terms and conditions.
Proof of shareholding, such as a Demat account statement or shareholder ID, is typically required. Companies may also require registration on their portals to verify eligibility.
Non-monetary benefits are usually non-taxable. However, monetary perks may attract taxes under Indian tax laws. Shareholders should consult tax advisors for clarity on implications.
Shareholder discounts are primarily available to retail investors, encouraging individual participation. Institutional investors typically do not qualify for these perks due to different holding structures.
Shareholder benefits are disclosed in annual reports, investor communications, or company websites. Checking with the company’s investor relations team can also provide details.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
