Nestle India board approved a stock split in the ratio of 1:10 on October 19, the first such move by the FMCG giant in the country. The record date for the sub-division of existing equity shares will be intimated in due course, the company said.
"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.
Stock split increases the number of securities issued and outstanding, thus increasing liquidity. Each security holder gets more securities, in direct proportion to the amount of securities they own on the record date; thus, their percentage ownership of the issuer does not change.
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At 11:30 am, Nestle India stock is quoting at Rs 23,329.65 on the NSE, up over 1 percent from previous close.
Along with the stock split, Nestle India also announced its September quarter results and second interim dividend of Rs 140 per equity share amounting to Rs 1,349.82 crore. The dividend will be paid on and from 16th November 2023. This is in addition to the first interim dividend of Rs 27 per equity share, the company said.
The Nestle and Kitkat maker's profit surged 36 percent year-on-year in the quarter gone by to Rs 908 crore as against Rs 668.3 crore a year ago. Total revenue of the company stood at Rs 5,036 crore, rising 9.6 percent from Rs 4,591 crore a year ago.
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