Nestle India announced Friday, August 8, as the record date for its maiden 1:1 bonus share issue- a significant move in the FMCG giant’s corporate history. Shareholders on record will receive one additional share for each share they currently hold. The decision, coming alongside steady revenue growth despite a recent dip in quarterly profit, is aimed at broadening investor participation and enhancing market liquidity.Boost for Retail investors, liquidity? The FMCG major said the move to double its equity shares aims to enhance stock liquidity and make its high-priced shares more accessible to smaller investors, the Economic Times reported. While a bonus issue does not alter a company’s fundamental value, it is often seen as a sign of strong financial health and management confidence. For example, a shareholder holding 50 Nestle India shares on the record date will receive 50 more, resulting in a total of 100 shares post-issue. However, the overall investment value will remain unchanged as the share price adjusts proportionally. Under SEBI’s T+1 settlement system, August 7 was the last day to buy shares to qualify for the bonus. Historical data from Trendlyne confirms this is Nestle India’s first bonus share announcement. The company’s high share price has historically been a barrier for retail participation compared with other FMCG peers. In its Q1FY26 results released in July, Nestle India posted a consolidated profit after tax of Rs 647 crore, down 13.4 per cent from Rs 747 crore a year earlier. Operational revenue, however, rose 6 per cent year-on-year to Rs 5,096 crore.
