Nestlé India share price: The shares of Maggi-maker Nestlé India rose on Thursday's trading session after the FMCG giant announced its first-ever bonus share issue, reinforcing investor confidence in the consumer-staples bellwether.

The stock added as much as 1% in the morning dealings and, by 11.50 AM, the scrip had marginally pared some of its gains, being up 0.36%, with the share price at ₹2,413.00, extending a modest gain logged earlier in the week.

On Thursday, after a board meeting, the company approved a 1-for-1 bonus that will double Nestlé India’s outstanding equity base by capitalising retained earnings of up to ₹9.64 billion.

“Issue of bonus equity shares in the ratio of 1:1, i.e., one (1) bonus equity share of face value of ₹1 each for every one (1) fully paid-up equity share of face value of ₹1 each, held by the members of the Company as on the record date, by capitalising a sum not exceeding ₹96,41,57,160 out of the retained earnings of the Company," Nestlé India said in a regulatory filing.

The company will announce a record date “in due course” to determine shareholder eligibility, the filing added. The bonus remains subject to approval by shareholders, a procedural step that is typically completed via postal ballot or at an extraordinary general meeting.

Why it matters

A bonus share issue does not change the underlying value of the business, but it enhances liquidity and is often read as a signal of management’s confidence in longer-term earnings strength. For Nestlé India, which has rarely resorted to large corporate actions other than steady cash dividends, the move underscores the depth of retained profits built up over decades of expanding its Maggi, Nescafé and dairy franchises.