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This potential bonus issue marks a significant milestone for Nestle India, which in January 2024 had carried out a stock split, making its shares more affordable to investors
Nestle India’s stock, however, closed 1.28% lower at Rs 2,309.10 on the Bombay Stock Exchange on June 19.
In what could be a historic move for investors, Nestle India, the FMCG giant behind household favourites like Maggi and KitKat, is preparing to reward shareholders with bonus shares for the first time since its listing. The company confirmed on Thursday, June 19, that its board will meet on June 26 to discuss the proposal.
The announcement comes as part of the company’s ongoing efforts to enhance shareholder value. Nestle India’s stock, however, closed 1.28% lower at Rs 2,309.10 on the Bombay Stock Exchange on June 19.
This potential bonus issue marks a significant milestone for Nestle India, which in January 2024 had carried out a stock split, making its shares more affordable to retail investors. Since then, the company has declared dividends five times, continuing its tradition of rewarding long-term investors.
On June 19, Nestle India also announced a Rs 10-per-share dividend, with July 4, 2025, set as the record date.
March Quarter: Profit Dips, Revenue Climbs
In the March 2025 quarter, the company’s standalone net profit fell 5.2% year-on-year to Rs 885 crore, even as operational revenue rose 4.5% to Rs 5,504 crore. Despite the dip in profitability, the strong revenue growth suggests continued consumer demand for Nestle’s core products.
What Are Bonus Shares?
Bonus shares are additional shares distributed to existing shareholders at no extra cost. These are typically issued in a fixed ratio based on the number of shares a shareholder already owns. The move does not increase a shareholder’s overall investment value but improves liquidity and investor sentiment.
While the short-term trend shows some weakness, the longer-term performance of Nestle India remains respectable:
- Past Week: Down 3.27%
- Past Month: Down 4.07%
- 3-Month Return: Up 5.69%
- Year-to-Date (2025): Up 6.40%
- 1-Year Return: Down 8.56%
- 3-Year Return: Up 38.41%
This mixed trajectory reflects both broader market volatility and sector-specific dynamics impacting FMCG players.
As always, market experts urge caution. While bonus shares can signal confidence from the company’s management and may boost liquidity, investors should assess fundamentals and consult certified financial advisors before making portfolio decisions.
Disclaimer: Stock market investments are subject to market risks. News18 is not responsible for any financial loss that may occur.
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