Nestle India , a leading food and beverage company, has made a significant announcement that is set to benefit its shareholders. The company's board has approved a 1:1 bonus share issuance, effectively doubling the number of equity shares in circulation.

Bonus Share Details

The bonus share issuance will increase Nestle India's equity shares from 96.42 crore to 192.84 crore. This move is expected to enhance the liquidity of the company's shares in the stock market and make them more accessible to a broader range of investors.

Key points of the bonus share issuance:

• Ratio: 1:1 (one new share for every existing share)
• Current equity shares: 96.42 crore
• Post-bonus equity shares: 192.84 crore

Record Date and Shareholder Approval

The company has not yet announced the record date for determining shareholder eligibility for the bonus shares. This crucial date will be communicated later and is subject to shareholder approval. Investors should keep an eye out for further announcements regarding the record date and the shareholder meeting to approve this corporate action.

Final Dividend Announcement

In addition to the bonus share issuance, Nestle India has declared a final dividend of Rs 10.00 per share. This dividend payout demonstrates the company's commitment to returning value to its shareholders.

Dividend details:

• Amount: Rs 10.00 per share
• Type: Final dividend

The combination of bonus shares and dividend payout is likely to be well-received by Nestle India's shareholders, potentially boosting investor sentiment towards the company.

Investors and market participants are advised to stay tuned for further updates from Nestle India regarding the implementation of these corporate actions, including the announcement of the record date for bonus shares and any additional information related to the dividend payout.

Nestle India , a leading food and beverage company, has announced a significant expansion in its production capacity for its popular Maggi noodles brand. The company is investing ₹105.00 crore to add a new production line at its Sanand factory in Gujarat, demonstrating its commitment to meeting the growing demand for its iconic instant noodle product.

Expansion Details

The expansion project involves the installation of a new production line dedicated to Maggi noodles at the Sanand facility. This strategic move is expected to enhance Nestle India's manufacturing capabilities, increasing the factory's capacity by about 20,300.00 tonnes per annum by FY26. The investment is part of the company's broader capital expenditure plan for 2020-2025.

Investment and Funding

Nestle India has allocated ₹105.00 crore for this expansion initiative. Notably, the company plans to finance this investment entirely through its internal accruals, showcasing its strong financial position and confidence in the project's potential returns.

Market Implications

This expansion could have several implications for Nestle India and the instant noodle market:

1. Increased Production Capacity: The new production line is set to significantly boost Nestle India's ability to meet the high demand for Maggi noodles.
2. Market Share: Enhanced production capabilities may help Nestle India maintain or potentially increase its market share in the competitive instant noodle segment.
3. Revenue Growth: The expansion could contribute to future revenue growth for the company, depending on market demand and consumption patterns.

Company's Strategic Focus

The substantial investment in expanding Maggi noodles production underscores Nestle India's focus on its core brands and its strategy to capitalize on the popularity of Maggi in the Indian market. This move aligns with the company's commitment to meeting consumer demands and strengthening its position in the food and beverage industry.

As Nestle India continues to invest in its production capabilities, stakeholders will be watching closely to see how this expansion impacts the company's performance and market presence in the coming years.