Last Updated on October 23, 2023 by SPN Editor
Good news for stock market enthusiasts, particularly those with a penchant for the FMCG behemoth, Nestle. The company is offering a staggering dividend of 1400%, equating to Rs 140 per share and there will be a 1:10 Nestle India’s Stock Split. The surge in Nestle’s stock price commenced after the company reported robust growth in Q2FY24 and rolled out these rewards for its investors.
For those holding Nestle India shares, here’s a breakdown of the stock split announced on October 19. Nestle India’s board of directors, in their meeting held on October 19, gave the green light to Nestle India’s Stock split in the ratio of 1:10.
This translates to each equity share with a face value of ₹10 each now being subdivided into 10 equity shares with a face value of Re 1 each. The stock split will reduce Nestle India’s share price to one-tenth of its current value. This move aims to make the stock more accessible to retail investors and subsequently boost liquidity in the market.
Nestle India Ltd’s shares soared to record highs on Friday, following the company’s announcement of a stock split in the wake of its board meeting on Thursday. Nestle India’s Stock Split is a corporate maneuver aimed at creating more shares by dividing existing ones into multiple new shares, without diluting the ownership interests of current shareholders.
As of the previous week, Nestle shares closed at Rs 24,266.60 apiece on BSE, with a market capitalization of nearly Rs 2.34 lakh crore. On October 20th, Nestle shares hit a fresh 52-week high of Rs 24,735.50 per share.
The record date for Nestle India’s Stock Split is when the company examines its records to identify eligible shareholders for the division of their existing shares. This marks the first-ever Nestle India’s Stock Split for FMCG giant Nestle India. Following the stock split announcement, Nestle India shares surged by as much as 2.5 percent on Friday, reaching a record high of ₹24,735.50 on BSE.
The stock witnessed substantial trading volumes, with the number of shares changing hands on BSE being five times the daily average by the beginning of the noon session on Friday.
In line with regulatory filings, Nestle’s second interim dividend for 2023 will be disbursed from November 16, 2023, to members whose names are listed in the Company’s Register of Members and serve as beneficial owners in the Depositories as of the Record Date set for November 1, 2023.
Nestle has consistently declared dividends since May 2001, and in the financial year 2022, the company disbursed a total dividend of 2,200%, equivalent to Rs 220 per share. Presently, the dividend yield stands at 0.95%