Nestle India Ltd. will hold a meeting of its board of directors on June 26 to consider and approve a proposal for issue of bonus shares, according to an exchange filing on Thursday.
Due to this event, the trading window for dealing in the securities of the company will remain closed from June 19 to June 28, inclusive of both days.
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 and 9.33% shareholding may also stand to profit from this move.
Shares of Nestle India closed 9.4% lower at Rs 2.318.9 apiece on the NSE, compared to a 0.08% fall in the benchmark Nifty. The stock has fallen 8.20% in the last 12 months and risen 6.86% on a year-to-date basis.
Out of 40 analysts tracking the company, 10 have a 'buy' rating on the stock, 12 recommend 'hold' and 18 suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 4.2%.
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