Shares of FMCG giant Nestle India will be in focus on Friday (August 8) which has been fixed by the company as the record date for its first-ever 1:1 bonus share issue. This marks a significant milestone in the FMCG major’s history, as it prepares to reward shareholders with one bonus share for every share held as on the record date.
Earlier in January 2024, Nestle India had executed a stock split, converting each share with a face value of Rs 10 into ten shares with a face value of Re 1 each.
Record date set for first-ever bonus issue
On July 29, Nestle India had, in a regulatory filing, said, “…this is to inform you that the Company has fixed Friday, 8th August 2025 as the “Record Date” for determining entitlement of Equity Shareholders for the purpose of issue of bonus equity shares in the ratio of 1:1, i.e., one bonus equity share of face value of Re 1 each for every one fully paid-up equity share of face value of Re 1 each.”
Key details for shareholders and investors
It is worth noting here that shareholders who will be buying shares of Nestle India during Friday’s trading session will not be eligible for the bonus issue of shares. In other words, the shareholding in your demat account will be proportionately adjusted according to the announced issue ratio.
The 1:1 bonus issue will double the total outstanding equity shares, increasing market liquidity and making the stock more accessible for retail investors. Although bonus shares do not change a company’s core fundamentals, they are often viewed as a reflection of management’s confidence and the firm’s strong financial position.
Nestle India June quarter performance
On July 24, Nestle India had released its June 2025 quarter earnings report with a profit drop of 13.4 per cent at Rs 646.59 crore as against Rs 746.6 crore in the same period last year. The drop was mainly due to higher commodity prices and increased operating costs.
Despite the profit dip, Nestle India’s revenue from product sales went up by 5.86 per cent to Rs 5,073.96 crore in comparison to Rs 4,792.97 crore in the corresponding quarter last year. Domestic sales climbed 5.45 per cent to Rs 4,860.01 crore, while exports saw a 16 per cent surge to Rs 213.95 crore.
Shares of Nestle India were down 0.66 per cent at 11:15 am today at a trading price of Rs 1,114.00.