Nestlé India Limited has made a significant announcement that is set to benefit its shareholders. The company has approved its first-ever bonus share issue in the ratio of 1:1, effectively doubling the number of shares held by each shareholder without any additional cost.

Bonus Share Details

The bonus share offering, approved by Nestlé India, comes with the following key points:

• Ratio: The bonus issue is in the ratio of 1:1
• Meaning: For every one share held, shareholders will receive one additional share
• Cost to Shareholders: The additional shares come at no extra cost to the existing shareholders

Impact on Shareholders

This move by Nestlé India is expected to have several implications for its shareholders:

1. Increased Shareholding: Shareholders will see their total number of shares double
2. Market Value: While the number of shares will increase, the market price per share is likely to adjust proportionately
3. Liquidity: The increased number of shares in circulation may potentially improve the stock's liquidity in the market

Major Beneficiaries

The bonus issue will particularly benefit the following stakeholders:

Company's Perspective

Bonus shares are often issued by companies for various reasons, which may include:

• Rewarding shareholders
• Improving the liquidity of the stock
• Conserving cash while still providing value to shareholders

It's important to note that while the number of shares will increase, the overall value of a shareholder's stake in the company remains unchanged immediately after the bonus issue.

Next Steps for Shareholders

Shareholders of Nestlé India should keep an eye out for further announcements from the company regarding:

• The record date for the bonus issue
• Any regulatory approvals required
• The timeline for the crediting of bonus shares to their accounts

Investors and market participants will be closely watching how this corporate action affects Nestlé India's stock performance and valuation metrics in the coming days.

Note: This article is based on the latest available information. Shareholders and potential investors are advised to consult with financial advisors and refer to official company communications for the most up-to-date and detailed information regarding this bonus share issue.

Nestle India , a leading food and beverage company, is set to consider issuing bonus shares for the first time in its history. The company's board of directors is scheduled to meet on June 26 to discuss this potential move, which comes on the heels of a recent stock split.

Potential Bonus Share Issue

The board meeting, slated for June 26, will deliberate on the issuance of bonus shares. This development is particularly noteworthy as it would mark Nestle India's first-ever bonus share offering, potentially increasing the number of outstanding shares without affecting the company's market capitalization.

Recent Corporate Actions

Nestle India has been active in shareholder-friendly moves recently:

• Stock Split: The company executed a 1:10 stock split, making its shares more accessible to a broader range of investors.
• Dividend Payout: Since the stock split, Nestle India has distributed dividends totaling ₹42.50 per share, demonstrating its commitment to returning value to shareholders.

Index Exclusion

In a separate development, Nestle India was recently excluded from the BSE Sensex index. The BSE Sensex is one of India's benchmark stock market indices, and changes in its composition can affect investor sentiment and fund allocations.

Investor Implications

The potential bonus share issue, if approved, could have several implications for Nestle India's shareholders:

1. Increased Liquidity: Bonus shares typically improve the stock's liquidity in the market.
2. Wealth Effect: While the overall value of an investor's holding remains the same, the increased number of shares can create a psychological wealth effect.
3. Future Dividends: With more shares in hand, investors may receive higher total dividend payouts if the company maintains its per-share dividend rate.

Investors and market watchers will be keenly awaiting the outcome of the June 26 board meeting, which could potentially add another chapter to Nestle India's capital restructuring efforts following the recent stock split.