Nestle Approves Issuance Of Bonus Shares In 1:1 Ratio

Nestle India Ltd. announced the issue of bonus shares through an exchange filing on Friday, with shareholders owning each equity share of face value Re 1 to receive a bonus share of the same face value.

The decision was made during a meeting of the company's board of directors held on Friday. The bonus shares will be issued by capitalising free reserves and accumulated surplus.

The record date for determining the eligibility of shareholders to receive the bonus shares will be announced separately, subject to shareholder approval.

Pre-bonus, Nestle's paid-up shareholding pattern stands at 96,41,57,160 equity shares with a face value of Re 1 each. Post-bonus, shares will double to 192 crore equity shares.

The company had traded ex-dividend on Friday, paying out a final dividend of Rs 10 per equity share to eligible shareholders.

In the fourth quarter, Nestle's net profit fell to Rs 885.4 crore, down from Rs 934 crore in the same period last year, primarily due to higher raw material inflation. Revenue from operations increased by 4.5% to Rs 5,503.8 crore, compared to Rs 5,268 crore a year ago.

Shares of the company closed 0.57% higher at Rs 2,392.80 apiece, as compared to a 0.22% advance in the benchmark NSE Nifty 50.

Out of 40 analysts tracking the company, 10 maintain a 'buy' rating, 18 recommend a 'hold,' and 12 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 0.9%.