Shares of FMCG giant Nestle India surged 5.5 percent to hit a 52-week high of Rs 25,705 on December 19 after the company announced January 5 as the record date for its stock split.
Bank in October, the company’s board approved its first-ever stock split in the ratio of 1:10. This means, every shareholder will get 10 shares of Nestle for each share they currently hold.
Through this stock split, the company will increase the number of shares issued and outstanding, thereby increasing the liquidity of the scrip.
This does not increase the total value of all the shares issued. Shareholders get more shares in proportion to what they hold on the record date.
At 2.22 pm, shares of Nestle India were trading 4.3 percent higher at Rs 25,390 on the NSE.
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In Q2, Nestle India’s recorded a 36 percent on year rise in its net profit to Rs 908 crore while its revenue jumped 9.6 percent t Rs 5,036 crore. The company fared better than its major FMCG peers, which reeled under pressure from a sluggish rural recovery.
FIIs reduced their shareholding in the company from 12.38 percent in June quarter to 12.1 percent in the September quarter. While DIIs increased their stake in the company from 9.05 percent to 9.32 percent during the same period.
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