Ram Kumar 
Nestlé India’s stock opened at ₹2,422 on the BSE
In a historic move, Nestlé India’s board of directors approved a 1:1 bonus share issue during its meeting held on Thursday, June 26, 2025. The decision marks the first time the FMCG giant has announced a bonus share issue since its listing on Indian stock exchanges. The record date to determine eligible shareholders will be disclosed shortly by the company.
Nestlé India Share Price Surges Ahead of Board Decision
Ahead of the crucial board meeting, Nestlé India’s stock opened at ₹2,422 on the BSE, showing a 1% increase compared to the previous day’s close of ₹2,404.45. The optimism among investors pushed the stock to an intraday high of ₹2,435, reflecting the market’s positive response to the anticipated announcement.
This development comes at a time when investor interest in defensive stocks like FMCG remains strong, especially with companies that demonstrate robust fundamentals and consistent dividend payouts.
First Bonus Issue in Company’s History
The company had earlier informed stock exchanges on June 19, 2025, that it would hold a board meeting to consider issuing bonus shares. With today’s approval, shareholders will receive one additional share for every share held, effectively doubling the number of outstanding shares.
This bonus issue is a significant milestone for Nestlé India, which has traditionally favored regular dividend payouts as a method of rewarding its investors. Most recently, it declared a final dividend of ₹10 per equity share for the financial year 2024–25.
What Does the Bonus Issue Mean for Investors?
A 1:1 bonus issue increases the number of shares in circulation but does not alter the company’s market capitalization. While this generally leads to a proportional decrease in share price post-issue, it enhances liquidity and makes the stock more affordable for retail investors, potentially expanding the investor base.
Moreover, issuing bonus shares is often seen as a signal of strong future prospects and confidence from the management.
Disclaimer:- This article is for informational purposes only and does not constitute investment advice. Please consult with a certified financial advisor before making any investment decisions. Stock market investments are subject to market risks.
