Nestle India Share Price Climbs After 1:1 Bonus Announcement

Nestle India Share Price Climbs After 1:1 Bonus Announcement

Market Performance

Shares of Nestle India Ltd. witnessed a 1.1% uptick, reaching ₹2,431 following the announcement of a 1:1 bonus share issue.

  • Current Price: ₹2,431
  • Year-to-date Performance: Up 12% in 2025

This price action follows the company's historic decision to reward shareholders with bonus shares for the very first time.

Main News: Nestle India Approves Bonus Shares in 1:1 Ratio

In a notable development, Nestle India's board has sanctioned the issuance of bonus shares in a 1:1 ratio. This means:

  • Each shareholder will be allotted one bonus share for every existing share they hold.
  • The bonus is subject to shareholder approval.
  • The record date to identify eligible shareholders will be announced at a later time.

This marks the first-ever bonus share issue in the company's history, adding to Nestle India's shareholder-friendly initiatives.

Company Details

Nestle India, a leading FMCG multinational, has been actively rewarding its investors in recent months.

  • In January 2024, the company executed a stock split:
    • Pre-split: 1 share of ₹10 face value
    • Post-split: 10 shares of ₹1 face value
  • Dividend Distribution Post Split:
    • Total five dividend payouts
    • Cumulative dividend: ₹42.5 per share

Index Exclusion & Market Impact

At the start of this week, Nestle India was removed from the BSE Sensex as part of an index rebalancing initiative.

This move led to:

  • Outflows exceeding $200 million, as per market reports

Despite this development, the news of the bonus issue has helped boost investor sentiment and share price performance.

Summary of the Article

  • Nestle India's share price increased by 1.1% following the announcement of a bonus share issue.
  • The company's first-ever bonus issue is in the 1:1 ratio, pending shareholder approval.
  • A prior stock split in Jan 2024 had already enhanced shareholding accessibility.
  • ₹42.5 per share has been paid out as dividends for the split.
  • Despite recent Sensex exclusion and related outflows, the stock is still up 12% in 2025.

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