Nestlé India Limited announced that its board has approved a bonus share issue in the ratio of one bonus equity share for every one fully-paid equity share held as on the record date. The move will be implemented by capitalising around ₹96.41 crore from the company’s retained earnings.
The company also plans to increase its authorised share capital from ₹100 crore to ₹200 crore, subject to shareholder approval at an extraordinary general meeting.
Following the announcement, Nestlé India’s stock rose by over 1 % as investors reacted positively to the corporate action.
Key take-aways for investors:
- The bonus issue does not entail fresh capital—shareholders will receive additional shares without further investment, and the total value of their holdings remains unchanged.
- Per-share metrics such as earnings per share (EPS) and dividend per share will adjust due to the doubling of share count.
- The bonus issue may improve liquidity and make the stock more accessible, especially to retail investors.
This announcement underscores Nestlé India’s strong reserving position and its intent to reward shareholders while maintaining its capital structure stability.
