NEW DELHI: Nestle India’s board on Thursday approved the issuance of bonus equity shares in a 1:1 ratio. The company, in a regulatory filing, announced that the bonus equity shares with a face value of Re 1 each will be issued in full to shareholders holding equity shares of the same face value.“The record date for determining the entitlement of the members of the company to receive bonus equity shares will be announced in due course,” the company stated. The move follows the company’s earlier disclosure on June 19, when it announced its intention to consider a bonus share issue. Outgoing Chairman and Managing Director Suresh Narayanan, addressing shareholders at the AGM, said, “…the board of directors have declared a bonus of one equity share, or one equity share held…, which is subject to the approval of the members in the EGM to be held on 24th July, 2025.”Over the past year, Nestle India’s shares decreased by 4.13 per cent, according to Economic Times. However, the stock has shown a strong recovery recently, gaining 11.98 per cent year-to-date (YTD), 12.97 per cent over the last six months, and 8.30 per cent in the past three months. In contrast, the stock slipped slightly by 0.97 per cent in the past month. This is Nestle India’s first bonus share issue since 1996 and comes after the recent share subdivision and listing on the National Stock Exchange (NSE) in 2024, according to PTI. The issuance is expected to benefit over 1.6 lakh small shareholders, most of whom hold fewer than five shares—a group that has long awaited such a move. The company described the decision as a gesture of appreciation toward shareholders, stating it was intended to “recognise shareholders’ consistent support throughout their growth journey.” Following the announcement, the company’s stock rose by nearly 1 per cent in morning trade. Shares were last seen trading at Rs 2,426.95 on the BSE, up 0.94 per cent.This comes after Nestle India Ltd reported a 6.5 per cent decline in consolidated net profit to Rs 873.46 crore for the March quarter FY25 in April, as the FMCG sector experienced food inflation and reduced urban consumption. The company had posted a profit of Rs 934.17 crore for the January–March period a year earlier, according to a regulatory filing. Revenue from product sales increased to Rs 5,447.64 crore during the quarter, compared to Rs 5,254.43 crore in the same period last year.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
