Nestle India's Board Approves First-Ever Bonus Issue; Shares Rise 1.6%

Nestle India shares rose as much as 1.6% on the National Stock Exchange on June 26 after the company's board approved 1:1 bonus issue. This means that the company will issue one bonus share for every equity share held. This is the first time the company has announced a bonus issue since its listing on Indian stock exchanges.

The company will capitalise ₹96.42 crore out of the retained earnings of the company, which stood at ₹4,008.95 crore as of March 31, 2025, Nestle India said in an exchange filing.

Shares of the fast moving consumer goods company ended 1.6% on the National Stock Exchange on June 25. At the close on June 25, the stock was over 13% lower than the 52-week high level mark, while 14% above its 52-week low level, which it touched in March this year. The stock has lost 5% in the last one year and 0.4% in the last one month. However, the FMCG stock has gained 11% in 2025 so far.

The company’s shares have been excluded from the BSE Sensex index at the start of the week under the index adjustment exercise. This had already resulted in outflows worth over $200mn in the stock, CNBC-TV18 said in a report citing analysts’ comments.

Nestle India had undertaken a 1:10 stock split in January last year and this year the FMCG company recommended a final dividend of ₹10 per equity share for the financial year ended March 2025. The company had reported a standalone net profit of ₹885 crore for the fourth quarter of financial year ended March 2025, marking a decline of over 5% on year. On the other hand, its sales improved during the quarter by over 4% year-on-year to ₹5,503.88 crore. Nestle India’s total and domestic sales grew by 4% each.

Nestle India’s turnover has grown 2.5 times to ₹20,100 crore in last decade, post the Maggi crisis in 2015, according to the company's annual report. At the time of the crisis, Nestle India's turnover was at ₹8,100 crore. In June 2015, FSSAI banned the company’s instant noodles brand – Maggi, for allegedly containing lead beyond permissible limits.