Nestle India board has reportedly, on October 19, approved a stock split at a ratio of 1:10, marking the FMCG giant's first such action in the country. Details regarding the record date for the division of the existing equity shares will be communicated at a later date.
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"The board of directors approved sub-division/ split of each equity share of face value of Rs 10 each, fully paid-up into 10 equity shares of face value of Re 1 each, fully paid-up by alteration of capital clause of the Memorandum of Association of the Company," said the FMCG major in an exchange filing.
A stock split augments the total quantity of securities in circulation, thereby enhancing liquidity. Every security holder receives additional securities, correlating directly with the quantity of securities they possessed on the record date. Consequently, their percentage ownership of the issuer remains unaltered.
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Nestle India share price was trading 1.79% higher at Rs 23,680 per share at 12:30 pm IST on NSE.
In conjunction with the stock split, Nestle India released its financial results for the September quarter and declared a second interim dividend of Rs 140 per equity share, totaling Rs 1,349.82 crore. Shareholders can anticipate the dividend to be disbursed starting from November 16, 2023. Notably, this second interim dividend comes on top of the initial interim dividend of Rs 27 per equity share, the company said.
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In the past quarter, the manufacturer of Nestle and Kitkat witnessed a remarkable 36 percent year-on-year increase in profits, reaching Rs 908 crore, up from Rs 668.3 crore the previous year. The company's total revenue for the quarter reached Rs 5,036 crore, marking a substantial 9.6 percent increase from the Rs 4,591 crore reported a year ago.