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Shares of Nestle India Ltd. will trade last on Aug 7 before the bonus record date
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Nestle India board recommended 1:1 ratio bonus shares at face value of Rs 1 each
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Record date for bonus shares is set for Aug 8, eligibility depends on holding shares then
Shares of Nestle India Ltd. will be on market radar on Thursday as it marks the last session for investors to buy shares before the record date for a bonus issue.
The board of Nestle India has recommended an issue of free bonus shares in the ratio of 1:1 at a face value of Rs 1 each. That means eligible shareholders will receive one bonus share for every one held. The record date is set as Aug. 8.
This marks the first issuance of bonus shares by the global food business company's India subsidiary.
To be eligible for a bonus issue, investors should pay attention to the record date, which is used to determine eligible shareholders. The company announces this date in advance, and only those who hold the shares in their demat account as of this record date will be eligible for the bonus allotment.
Under India's T+1 settlement cycle, investors must buy the shares at least one trading day before the record date to be eligible. This means that purchases made on the record date itself will not reflect in the demat account in time.
The deemed date of allotment of Nestle India bonus shares will be Tuesday, Aug. 12, 2025, and these bonus shares will be made available for trading on the next working day of allotment i.e., Wednesday, Aug. 13.
A bonus issue is the distribution of free shares to eligible shareholders. The share price falls in the ratio of the bonus allotment at the ex-date. However, this does not affect the overall value of holdings.
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