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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