Nestlé India shares rise nearly 2% on bonus issue plan

Snapping losses of previous sessions, shares of Maggie-maker Nestlé India rose nearly 2% on Friday after the fast-moving consumer goods (FMCG) major said that its board will consider a plan to issue bonus shares at its meeting next week. The board of Nestlé India will meet on June 26 to consider and approve the proposal for issue of bonus shares, subject to requisite approvals, it said in a post-market exchange filing yesterday.

Cheering the news, the price of Nestlé India shares surged by as much as 1.63% to ₹2,356.80 on the BSE. The FMCG heavyweight opened higher by 0.9% at ₹2,339.90, after ending 1.2% lower in the previous session.

At the time of reporting, Nestlé India shares were trading at ₹2,343.85, up 1.07%, with a market capitalisation of ₹2.25 lakh crore. The blue-chip stock hit its 52-week high of ₹2,777 on September 27, 2024, while it touched its 52-week low of ₹2,115 on March 5, 2025.

In the past one year, the price of Nestlé India shares has fallen nearly 8%, while it climbed over 8% in the past six months. In the past one month, the counter has delivered flat returns.

“This is to inform you that a meeting of the board of directors of the company is scheduled to be held on Thursday, 26th June 2025, to inter-alia consider and approve the proposal for issue of bonus shares, subject to requisite approvals,” Nestlé India said in a BSE filing on June 19.

If approved, this would be the first bonus issue by Nestlé India after a gap of nearly three decades. The stock, which made its market debut in 1962, last issued bonus shares in 1996 in a 1:2 ratio.

In January this year, Nestlé India announced a stock split in a 1:10 ratio to make the shares more accessible to retail investors.

In the past 12 months, Nestlé India has declared an equity dividend amounting to ₹25.50 per share. While announcing its March quarter earnings this year, the company declared a final dividend of ₹10 per share for its eligible shareholders, and has fixed July 4 as the record date for determining the eligibility. At the current share price, the stock’s dividend yield stands at 1.10%.

For FY25, total sales stood at ₹20,077.5 crore, profit from operations stood at 21.5% of sales at ₹3,314.5 crore, while earnings per share were at ₹34.38.

Among the various verticals Nestlé India operates, powdered and liquid beverages were the largest growth contributor throughout the year, with high double-digit growth. Its Nescafé brand gained market share and brought more than 5.1 million households into the coffee category. The company's pet care business also reported high double-digit growth.

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