Nestlé India Shares Rise as Board to Mull First-Ever Bonus Share Issue

Stock Climbs 1.6% After Bonus Share Proposal Announcement

Shares of Nestlé India surged by 1.62% to ₹2,356.60 on the NSE in early trade on June 20 after the company revealed plans to consider issuing bonus shares for the first time in its history. The board meeting to decide on the proposal is scheduled for Thursday, June 26, 2025.

In a regulatory filing dated June 19, Nestlé India stated, “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 the requisite approvals”.

If approved, this move would mark a significant milestone for the FMCG major, which had last initiated a 1:10 stock split in January 2024.

Q4 FY25 Financial Snapshot

In its results for the March quarter (Q4 FY25), Nestlé India reported:

• Consolidated Net Profit: ₹873.46 crore, down 6.5% year-on-year from ₹934.17 crore
• Revenue from Sale of Products: ₹5,447.64 crore, up 3.67% from ₹5,254.43 crore in Q4 FY24
• Domestic Sales: ₹5,234.98 crore, a 4.24% increase
• Exports: ₹212.66 crore, an 8.65% decline
• Total Expenses: ₹4,307.76 crore

Chairman and Managing Director Suresh Narayanan highlighted strong growth in key categories, saying, “This quarter we witnessed double-digit growth in beverages and confectionery, with 3 out of 4 product groups delivering healthy growth. Our domestic sales crossed the ₹5,235-crore mark, the highest ever in any quarter, supported by improving volume growth”.

What is a Bonus Share Issue?

A bonus share issue refers to the distribution of additional shares to existing shareholders without any additional cost, based on the number of shares already held. It increases the total number of shares in circulation but does not affect the overall market capitalisation or the investors’ proportional ownership. For instance, in a 1:1 bonus issue, shareholders receive one additional share for every share held.

Impact of the SENSEX Rejig

Separately, Nestlé India is also in the spotlight as it is set to be removed from the 30-share SENSEX index, effective Monday, June 23. It will be replaced by Trent and Bharat Electronics, as per the rejig announced by Asia Index, a joint venture between S&P Dow Jones Indices and BSE.

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