NTPC Limited (NSE: NTPC) has long been a leading force in India’s energy sector and a consistent performer in the stock market. In the past year alone, NTPC’s share price has surged by over 92%, reaching ₹372.95. However, despite this impressive short-term growth, the long-term returns show a different picture, with only a 0.6% decline over the past three years. Understanding this performance requires a closer look at the fundamentals and a reminder that many investors may be missing out on the full value of their holdings due to IEPF unclaimed shares.
If you or your family members have invested in NTPC in the past and haven’t claimed dividends or shares, there’s a chance those assets have been transferred to the Investor Education and Protection Fund (IEPF). Let’s walk through finding and reclaiming these unclaimed shares and dividends.
Calculation of NTPC’s Share Growth
NTPC has shown consistent earnings and revenue growth, with EPS rising 18.4% and revenue growing by 16.97% over the last three years. In 2004, the stock was trading at approximately ₹80. As of July 5, 2024, it had climbed to ₹376, excluding bonuses or splits. Investors who purchased shares years ago may now find their original investments significantly more valuable.
For example, if you had purchased 100 shares in 2004 at ₹80, your total investment would have been ₹8,000. With a 1:5 bonus issue in 2019, you’d now own 120 shares, worth ₹45,120 at today’s market price.
Imagine losing access to that investment simply because the shares were unclaimed and transferred to IEPF. That’s why claiming your NTPC unclaimed shares and dividends is not only advisable but essential.
Considering Dividends: Why TSR Matters
When evaluating investment returns, most people look at share price appreciation alone. However, for dividend-paying companies like NTPC, the total shareholder return (TSR) gives a fuller picture. TSR includes dividends and assumes they are reinvested.
NTPC’s TSR for the past year stands at 32%, higher than its pure share price return. If you haven’t claimed past dividends, they may be sitting with the IEPF. Reclaiming these funds can significantly improve your portfolio’s total returns. Every dividend payout contributes to long-term gains, especially when compounded over time. Unclaimed dividends, if left unchecked, represent a loss in potential wealth. Checking and claiming them through the IEPF portal is a simple but impactful financial step.
Why Have Your NTPC Limited Shares Gone to IEPF?
As per Indian law, if a dividend remains unclaimed for seven consecutive years, the dividend and the associated shares must be transferred to the IEPF. Previously, unclaimed dividends would remain with companies indefinitely, sometimes without investors’ knowledge. The IEPF framework, introduced in 2016, was designed to solve this issue and protect investor interests. This transfer is mandatory and applies even if investors are unaware of the dividend. Often, these shares belong to individuals who have changed addresses or lost track of old investments. By reclaiming them through the IEPF, investors can recover not just shares, but years of lost growth and dividends.
If you have any confusion related to unclaimed shares of NTPC, consider Crystal Peak Wealth. They provide expert assistance in filing IEPF claims, helping investors recover unclaimed dividends and shares with proper documentation. Their support can simplify the process and reduce the chances of rejection.
What Is IEPF and Its Purpose?
The Investor Education and Protection Fund (IEPF) is a government initiative under Section 125 of the Companies Act, 2013. Established on September 7, 2016, it manages unclaimed dividends, matured deposits, debentures, and more. The IEPF ensures that investors remain in control of their assets, even if they’ve been forgotten or unclaimed for years. It acts as a safeguard against the permanent loss of shareholder wealth. The fund serves as a bridge between investors and companies to streamline the recovery process. Through its online portal, the IEPF Authority provides a transparent and accessible way to reclaim lost investments.
Key responsibilities include:
– Refunding unclaimed shares and dividends.
– Promoting investor awareness and protection.
– Reimbursing legal expenses incurred by depositors in pursuing rightful claims.
How to Claim NTPC Shares from IEPF
Here’s a step-by-step breakdown of how you can reclaim your NTPC shares that have been transferred to IEPF:
Eligibility to Claim
Any investor, legal heir, nominee, or successor can apply to reclaim:
– Unclaimed shares
– Dividends
– Matured deposits or debentures
– Interest or sale proceeds of fractional shares
Submission of Claim Form
Go to the IEPF website and download Form IEPF-5. Fill it out and send it with all needed documents to NTPC’s registered office.
Verification by Company
NTPC will check your claim within 15 days. Then, they will send a report and your documents to the IEPF Authority.
Confirmation of Eligibility
Depending on the type of claim:
– If it’s for money, you’ll get an online payment.
– If it’s for shares, they’ll be sent to your Demat account after approval.
Record-Keeping
IEPF keeps proper records of all payments and share transfers to make the process clear and trackable.
Response Time
IEPF should reply within 60 days after NTPC verifies your claim. If delayed, they must inform you with reasons.
Deficiency Notification
If your form or documents are incomplete or wrong, IEPF will inform you and NTPC. You’ll need to fix the mistakes. So, always check your papers well.
Transmission Process for Legal Heirs
If you are a legal heir or nominee, finish the process of transferring shares with NTPC first. Then, file your IEPF claim.
Verification of Documents
NTPC will check all documents and give you a letter confirming your claim. This letter is then sent to the IEPF.
Consolidated Claims
You can only file one combined claim per company per financial year. So, include all your unclaimed shares and dividends in one go.
Indemnity Clause
IEPF is not responsible for any errors. NTPC must take full responsibility if they give wrong reports to the Authority.
How to Claim a Dividend
Acting quickly is important, as delays can make the process more complex. Reclaiming your rightful earnings ensures your investments continue to work in your favour. To recover unclaimed dividends from IEPF, follow the steps outlined below:
Step 1: Convert Physical Shares to Demat Form
Before initiating your claim, ensure your physical share certificates (if any) are converted into electronic (Demat) form by opening a Demat account with a registered depository participant.
Step 2: Access and Fill Form IEPF-5
Go to the official IEPF website: http://www.iepf.gov.in.
– Download Form IEPF-5 after reviewing the user guide, FAQs, and instructions available on the portal.
– Complete the form with accurate details, save the file, and upload it to the MCA portal following the on-screen prompts.
Step 3: Save the Acknowledgement
Once you successfully submit the form online, you will receive an acknowledgment with a Service Request Number (SRN). Make sure to save or print this SRN to track the progress of your application.
Step 4: Prepare Hard Copies
Print a physical copy of the submitted IEPF-5 form and acknowledgement for record-keeping and submission.
Step 5: Create Supporting Documents
Indemnity Bond:
Draft an indemnity bond on plain paper. The exact format and stamping instructions are in the IEPF instruction manual (see page 8).
Advance Stamped Receipt:
Fill out the prescribed advance receipt, sign it, and get it countersigned by two witnesses. Format details are on page 7 of the instruction kit.
Step 6: Gather and Organise Required Documents
Assemble all necessary paperwork, including:
– A hard copy of the filled Form IEPF-5 and the acknowledgement slip.
– Self-attested copy of the submitted e-form.
– Proof of identity and entitlement documents such as
– For Indian applicants: Aadhaar card and original share certificates or dividend warrants.
– For NRIs or foreign citizens: Passport, OCI/PIO card.
– A cancelled cheque from the claimant’s bank account.
Once all documents are prepared, send them to the concerned company’s registered office for verification before forwarding the claim to the IEPF Authority.
Conclusion
Getting back your unclaimed NTPC shares and dividends is not just paperwork. It is a smart money decision. NTPC has strong performance, rising earnings, and gives regular dividends, making it a good investment. Don’t lose the money that belongs to you. Start your IEPF claim today and protect your financial future. If you are not sure how to do it or need help with the legal part, Crystal Peak Wealth can help. They will guide you in the IEPF process and make sure your forms are filled the right way, without delays.