Investors buying the stock during Friday’s trading session will not be eligible for the bonus allotment.
Nestle India’s first-ever bonus share issue came into effect on Friday, under which the company offered one bonus share for every share held as on the record date (August 8), in a 1:1 ratio. The move is aimed at improving liquidity in the stock.
The move follows Nestle India’s stock split in January 2024, when the company divided one share of face value ₹10 into 10 shares with a face value of ₹1 each. That split made the stock more accessible to a broader base of investors, and the current bonus issue further builds on that.
What Does It Mean For Investors?
Under the scheme, the number of shares in an investor’s demat account will double in line with the ratio, without any change in the overall investment value. For example, if an investor has 10 shares worth ₹22,000, the bonus issue will see their holdings increase to 20 shares, though the total value will remain unchanged.
However, investors purchasing the stock during Friday’s trading session will not be eligible for this bonus allotment.
What Is The Retail Mood?
Data on Stocktwits shows that retail sentiment has remained ‘neutral’ since the end of July. The shares have fallen 8% in the last one month.
Commodity Prices Impact Q1 Bottomline
Nestle, which makes Maggi instant noodles, reported a 13.4% year-on-year drop in consolidated profit after tax for Q1 FY26, falling to ₹647 crore from ₹747 crore a year earlier.
However, despite the profit decline, revenue from operations rose 6% to ₹5,096 crore, driven by a 5.5% growth in domestic sales to ₹4,860 crore and a 16% jump in export sales to ₹214 crore. Total income grew 5% to ₹5,100 crore, while product sales also rose to ₹5,074 crore.
The FMCG giant attributed the weaker profitability to higher commodity prices, increased operating costs from manufacturing expansion, and high finance costs.
The stock had slipped 5% after the results.
Nestle India stock is currently trading 0.64% lower at ₹1,110.1, having gained around 2.2% year-to-date.
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