FMCG major, Nestle India has announced a stock split in the ratio of 1:10. This is the first such move by the company in India.
The move is aimed at enhancing the liquidity of the company’s equity shares and encouraging the participation of retail investors by making equity shares of the company more affordable. Currently, one share of Nestle India costs around ₹23,490.
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The FMCG major also announced a second interim dividend of ₹140 for the financial year. The company’s Q3 results showed a jump in profit by 37% to ₹908 crore. Soon after the Q3 profit announcement company's stock price surged over 1%.
The stock split will result in one share with a face value of ₹10 being split into ten shares having a face value of ₹1 each. This means that existing shareholders will receive nine additional shares for every share held by them. The move is expected to make Nestle India’s equity shares more affordable and increase retail participation in its stock.
Nestle India has been performing well in recent years, with its stock price increasing steadily. The company has been expanding its product portfolio and investing in new technologies to improve its operations.