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 recommended its first-ever bonus share issue in a 1:1 ratio, marking a milestone in its corporate history.

Bonus Share Details

The bonus shares will be issued at a face value of Re 1 each, with the record date set for August 8. This means that shareholders must hold Nestle India shares in their demat accounts by this date to be eligible for the bonus allotment. Given India's T+1 settlement cycle, investors looking to capitalize on this opportunity need to purchase shares at least one trading day before the record date.

Recent Dividend Payout

Prior to this bonus issue announcement, Nestle India had declared a final dividend of Rs 10.00 per equity share. The company has already completed the payout of this dividend on July 26, further rewarding its shareholders.

Stock Performance

The news of the bonus issue has been well-received by the market. Nestle India's shares closed 1.20% higher at Rs 2,276.50, outperforming the broader market as the NSE Nifty 50 index fell 0.82% on the same day.

However, looking at the longer-term performance, the stock has shown mixed results:

• Over the past 12 months: Declined by 8.35%
• Year-to-date: Gained nearly 5.00%

Analyst Outlook

The current analyst sentiment on Nestle India appears cautiously optimistic:

Out of 40 analysts covering the company, the majority (20) suggest a 'hold' position. The average 12-month consensus price target indicates a 4.70% upside potential from the current price levels.

This bonus issue announcement, coupled with the recent dividend payout, underscores Nestle India's commitment to enhancing shareholder value. As the record date approaches, investors will be closely watching the stock's performance and considering their position in light of this corporate action.

Nestle India Limited has announced a significant leadership change, as Chairman and Managing Director Suresh Narayanan is set to retire on July 31, 2025, after a distinguished 26-year career with the Nestlé Group.

Retirement Announcement

The company disclosed this information through a regulatory filing to the stock exchanges, describing Narayanan's upcoming departure as a "well-deserved retirement following his illustrious tenure." This announcement marks the end of an era for one of India's leading food and beverage companies.

Career Highlights

Mr. Narayanan's extensive 26-year journey with the Nestlé Group has been marked by significant contributions to the company's growth and success in India. His leadership has been instrumental in navigating Nestlé India through various market challenges and opportunities.

Transition Timeline

According to the regulatory filing, Suresh Narayanan will continue in his role as Chairman and Managing Director until July 31, 2025. This extended notice period provides Nestlé India with ample time to ensure a smooth leadership transition.

Company Statement

In its official communication, Nestlé India stated, "After an illustrious career of over 26 years with Nestlé Group, Mr. Suresh Narayanan, Chairman and Managing Director of Nestlé India Limited will take a well-deserved retirement on 31st July 2025."

Looking Ahead

While the announcement of Narayanan's retirement is significant, Nestlé India has not yet disclosed information about his successor. Stakeholders and industry observers will be keenly watching for updates on the company's future leadership plans.

This leadership change comes at a crucial time for Nestlé India, as the company continues to strengthen its position in the competitive Indian food and beverage market. The successor to Narayanan will face the challenge of building upon his legacy and driving the company's growth in an evolving consumer landscape.

As the retirement date approaches, the industry will undoubtedly reflect on Narayanan's contributions to Nestlé India and the company's strategic direction under new leadership.