Nestle India Ltd. on Thursday approved a bonus issue of equity shares in 1:1 ratio. This is the first-ever bonus issue by the FMCG giant.
The record date for the bonus will be announced in due course, the company said in an exchange filing. The Maggi maker added that the bonus is to be credited within two months of approval by the board of directors i.e. on or before Aug. 25.
The company's promoters Maggi Enterprises Ltd., which holds 27.5 crore shares or a 28.48% stake in the company, and Nestle SA, which holds 33.1 crore shares or a 34.28% stake in the firm, are expected to benefit from the bonus issue.
Nestle's retail investors who hold up to 9 crore shares or 9.33% shareholding also stand to benefit from this move.
Nestle in January 2024 had carried out a stock split. The company had split one share with a face value of Rs 10 into 10 shares with face value of Re 1 each. This indicated that shareholders that had 10 stocks pre-split would have 100 shares. However, the face value of the shares remained the same.
Apart from this, BSE updated the constituent list of the benchmark 30-share Sensex, resulting in the replacement of two stocks, including Nestle India. Nestle India was removed from the index, with an estimated outflow ranging from $209 million to $220 million (approximately Rs 1,815 crore to Rs 1,910 crore), which is 8.1 times its average daily volume. Over the past six months, Nestle India's stock has appreciated by 11.84%.
The shares of Nestle rose as much as 1.27% to Rs 2,435 apiece, the highest level since June 24. The stock pared gains to trade 0.47% higher at Rs 2,426.90 apiece, as of 9:55 a.m. This compares to a 0.59% advance in the NSE Nifty 50 Index.
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