Nestle India bonus issue: Board recommends bonus share issue in 1:1 ratio. Check details

Nestle India bonus issue: The board of Nestle India on Thursday recommended a bonus share issue in a 1:1 ratio. This marks the first-ever bonus issue announcement by the fast-moving consumer goods (FMCG) maker.

Nestle India bonus issue details

Announcing the outcome of the board meeting on the stock exchanges, the blue-chip company, Nestle India, said, "Board has announced the issue of bonus equity shares in the ratio of 1:1, i.e., one (1) bonus equity share of face value of ₹1/- each for every one (1) fully paid-up equity share of face value of ₹1/- each, held by the members of the Company as on the record date, by capitalising a sum not exceeding ₹96,41,57,160/- (Rupees ninety-six crore forty-one lakh fifty-seven thousand one hundred sixty) out of the retained earnings of the Company, subject to the approval of the members of the Company.

The record date for determining the entitlement of the members of the company to receive bonus equity shares, however, is yet to be announced.

The company, in its release, said that it will be announced in due course. The record date helps determine the shareholders who are eligible to reap the benefits of the announced corporate action by a company.

Nestle India had rewarded the investors earlier this year by announcing a dividend along with financial results for the year and quarter ended March 2025.

Nestle India had recommended paying a final dividend of ₹10/- (Rupees ten only) per equity share having a face value of Re 1/- (Rupee one only) on the company's 964,157,160 equity shares that were issued, subscribed for, and paid up during the fiscal year 2024–2025.

Nestle India share price movement

Nestle India's shares opened at ₹2422 on the BSE on Thursday, ahead of today's board meeting to consider the bonus share issue. The price of Nestle India's shares increased by over 1% as the FMCG stock continued to soar, hitting an intraday high of ₹2444.65 post announcement around the issue of bonus shares.

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