Nestle India is set to disburse its first-ever bonus shares to its stakeholders, with the record date fixed for tomorrow, August 8, 2025. The company's board had earlier recommended the issue of bonus shares in a 1:1 ratio, meaning shareholders will receive one bonus equity share for every fully paid-up equity share they hold. The face value of each bonus share is Re 1. This decision, a landmark move for the company, was approved by equity shareholders at an Extraordinary General Meeting (EGM) held on July 24, 2025.
To be eligible for the bonus issue, investors must hold the shares in their demat account as of the record date. Due to India's T+1 settlement cycle, the last day to purchase Nestle India shares to be eligible for the bonus issue is today. Purchases made on the record date will not reflect in the demat account in time for eligibility.
This bonus issue marks a significant event for Nestle India, with the last such corporate action being a stock split in 1996 and NSE listing in 2024. The company will issue 96.41 crore new shares by capitalizing retained earnings of approximately ₹96.41 crore. Following the bonus issue, the authorized capital is set to double from ₹100 crore to ₹200 crore. The company plans to credit the bonus shares to shareholders' accounts on or before August 25, 2025.
Nestle India's Chairman and Managing Director, Suresh Narayanan, stated that the bonus issue recognizes the steadfast support and loyalty of the company's shareholders. He also mentioned that this decision is likely to improve the liquidity of the shares and broaden the shareholder base. The bonus issue will particularly benefit over 160,000 small shareholders holding less than five shares, including 45,000 who only hold one share.
In the last month, Nestle India also issued its final dividend for fiscal 2025 at Rs 10 per equity share. The company marked an ex-date of July 4 for the dividend, with the payout carried out on July 26.
Nestle India, the Indian subsidiary of the Swiss multinational food and beverage company, has a strong presence in the country with well-known brands like Maggi, KitKat, NESCAFÉ, and Milkmaid. The company's revenue for Q1FY26 increased by 5.86 percent year-over-year, while net profit saw a decline of 11.78 percent.
As of August 3, 2025, Nestle India has a market capitalization of Rs 2,19,437.35 crore. On Friday, Nestle India's stock closed at ₹2,275, up 1.2% from its previous close. Out of 40 analysts tracking the company, eight maintain a 'buy' rating, 20 recommend a 'hold,' and 12 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 4.7%.
