Nestle India shares rally 4% this week as Street cheers 1:1 bonus announcement
Shares of Maggi-maker FMCG firm Nestle India have surged 3.7% this week to touch a high of Rs 2,453.95 on the BSE, uplifted by the positive sentiment around the company's announcement of its first-ever 1:1 bonus shares issue for the shareholders.
ADVERTISEMENT The board of directors of Nestle India, on Thursday, approved a 1:1 bonus share issue for its shareholders, stating that the record date to determine shareholder eligibility will be announced at a later time.
'This is to inform you that the Board of Directors of the Company, at its meeting held today i.e. 26th June 2025, inter-alia, considered and approved the following: 1. Issue of bonus equity shares in the ratio of 1:1, i.e., one (1) bonus equity share of face value of 1/- each for every one (1) fully paid-up equity share of face value of 1/- each, held by the members of the Company as on the record date,' said Nestle in its regulatory filing.
Nestle India has also announced that the bonus shares will be credited or dispatched to eligible shareholders within two months, i.e., on or before August 25, 2025.According to data available on Trendlyne, this marks the first-ever instance of Nestle India issuing bonus shares to its shareholders.
ADVERTISEMENT A 1:1 bonus share issue means that for every one share an investor already holds, they will receive one additional share for free. It is a way for a company to reward its shareholders by increasing the number of shares they own, without changing the overall value of their investment.While the total number of shares doubles, the stock price is adjusted accordingly, so the overall market value remains the same. This move increases liquidity and may signal the company's confidence in its future earnings.
ADVERTISEMENT Around 10:15 am today, the shares of Nestle India were trading flat at Rs 2,439.30 on the BSE.
Also read: Rs 1 lakh crore selloff tsunami threatens Nifty rally as promoters, strategic investors exit
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