Nestle India, a prominent player in the fast-moving consumer goods (FMCG) sector, is set to announce its first-ever bonus share issue today, June 26, 2025. This decision follows the company's recent dividend announcement, placing its shares in the spotlight for investors and market analysts.
The company's Board of Directors is scheduled to meet today to discuss and potentially approve the bonus share proposal, subject to the necessary statutory and regulatory clearances. This move has generated considerable interest, as it represents a historic moment for Nestle India.
Nestle India's stock price has shown positive momentum leading up to the board meeting. Yesterday, June 25, 2025, the company's shares closed at Rs 2,405.00 on the NSE, a gain of Rs 39.20 or 1.66% for the day. The stock hit an intraday high of Rs 2,428.90. The market capitalization of Nestle India is nearly Rs 2.32 lakh crore.
This will be Nestle's first bonus issue since its stock sub-division in January 2024, in the ratio of 1:10. Since the stock split, Nestle has delivered a total dividend of Rs 42.5 to its investors. In 2025 alone, the company announced a Rs 24.25 dividend per share. The company is yet to turn ex-dividend for Rs 10 per share, with the record date fixed on July 4, 2025.
Bonus shares are additional shares given to existing shareholders without any extra cost. Companies issue bonus shares to encourage retail participation and expand their equity base. By increasing the number of outstanding shares, the market price per share typically decreases, making it more accessible to retail investors and boosting liquidity and trading activity.
Nestle India has a track record of rewarding its shareholders through dividends. For the fiscal year 2024-2025, the company recommended a final dividend of ₹10 per equity share. The company has declared dividends 4 times totaling ₹17 in the current fiscal year (FY2024-2025).
In the quarter ended March 2025 (Q4 FY25), Nestle India reported strong sales performance, with product sales increasing to Rs 5,447.64 crore compared to Rs 5,254.43 crore in the corresponding period last year, reflecting a 3.7% growth. Total income also saw a 4.1% rise, reaching Rs 5,512.32 crore from Rs 5,294.34 crore. However, the rise in earnings was offset by higher operational costs. Total expenses surged by 6.3% to Rs 4,307.76 crore, up from Rs 4,053.84 crore, indicating increased spending across various cost heads including raw materials, logistics and marketing.
The company's shares have demonstrated a strong performance, outperforming the Sensex and Nifty benchmarks year-to-date with an upside of over 11%. Nestle's all-time gains are approximately 10,751.58%.
The announcement of Nestle India's bonus issue is highly anticipated by investors, as it could lead to increased retail participation and enhanced liquidity in the stock.
