FMCG major, Nestle India share price is seeing a steady upmove after it announced that the board will meet on June 26, 2025, to consider and approve a proposal for issuing bonus shares. This will be the first-ever bonus issue in the history of Nestle India. As a result, the trading window for transactions involving the company’s securities will be closed from June 19 until June 28.
Nestle’s board meet on June 26 for bonus issue
The suggested bonus issue is likely to increase liquidity and draw more participation from retail investors. The update on Nestle India’s board meeting came after market hours on June 19.
However, the FMCG major had carried out a stock split in January 2024, where it split a share of a face value of Rs 10 into ten shares of a face value of Rs 1 each.
Nestle India has paid dividends to its shareholders five times after the stock split in January last year, aggregating to a total dividend of Rs 42.50 per share.
Nestle India to exit Sensex on June 23
Also, Nestle India and IndusInd Bank will be removed from the 30-stock BSE Sensex on June 23. It will be a part of the index’s semi-annual rejig. Both stocks will be replaced by Trent and Bharat Electronics, which gained popularity recently after being added to the Nifty50 index.
According to Nuvama Alternative & Quantitative Research, the exclusion of Nestle India from the Sensex will result in an outflow of $209 million in the stock.
Nestle India to invest Rs 5000 crore in India
Apart from that, Nestle India will invest around Rs 5,000 crore in India in the coming years to meet the growing demand for its products, it said in the Annual Report for 2024-25 released on June 03.
“Consistent with the growth in business and operations, the company plans to carry out capital expenditure to increase the capacities, productivity, investment in the new product lines and sustainability initiatives across all its existing factory locations,” read the report.
Nestle India’s stock performance
The share price of Nestle India has fallen 1.9% in the last five trading sessions. The stock has declined by over a per cent in the past one month. However, the FMCG giant has given a return of 8% in the last six months. Nestle India’s stock price has corrected by more than 8% in the past one year.