Nestle India to Give Bonus Shares in 1:1 Ratio
By Ankur Chandra | Published at: Jun 26, 2025 11:41 AM IST
Gurugram, June 26 2025-Nestlé India Ltd (NSE: NESTLEIND | BSE: 500790) announced a 1:1 bonus share issue that will take its authorised capital to ₹200 crores, almost double the current levels. The move indicates strong financial health and efficient capital utilisation. Shareholders will receive one bonus equity share for every existing fully paid-up share held, with the record date to be declared separately.
During the early trading hours, the company’s stock increased by almost 1.6% (reaching ₹2443.60) after consolidating a bit. The bonus issue might result in short-term EPS dilution, though the actual value per shareholder remains unchanged.
Key Resolutions Passed
In its board meeting held on June 26, 2025, Nestlé India approved the following actions:
1. Bonus Share Issue
- Ratio: 1:1 (one bonus share for every one existing share)
- Face Value: ₹1 per share
- Total Bonus Shares: 96,41,57,160
- Total Capitalised Amount: ₹96.41 crore
- Source: Retained earnings (free reserves) as per audited FY25 financials
2. Capital Clause Alteration
To support the bonus issuance, the company will seek shareholder approval to amend Clause 5 of its Memorandum of Association:
- Authorised Capital (Pre-Bonus): ₹100 crore
- Authorised Capital (Post-Bonus): ₹200 crore
3. EGM Announcement
Nestlé India will convene an Extraordinary General Meeting (EGM) via video conferencing on July 24, 2025 to obtain shareholder approvals for the bonus issue and capital clause alteration.
Share Capital Comparison
| Particulars | Pre-Bonus Issue | Post-Bonus Issue |
|---|---|---|
| Authorised Capital | 100,00,00,000 shares @ ₹1 | 200,00,00,000 shares @ ₹1 |
| Paid-up Capital | 96,41,57,160 shares @ ₹1 | 192,83,14,320 shares @ ₹1 |
| Subscribed Capital | 96,41,57,160 shares @ ₹1 | 192,83,14,320 shares @ ₹1 |
Bonus Issue Details
| Parameter | Details |
|---|---|
| Type of Security | Equity Shares |
| Method of Issue | Bonus Issue (1:1) |
| Total Bonus Shares | 96,41,57,160 shares |
| Face Value per Share | ₹1 |
| Amount Capitalised | ₹96.41 crore |
| Reserve Utilised | Retained Earnings (Audited FY25: ₹4008.95 crore) |
| Estimated Credit Date | On or before August 25, 2025 |
The figures are based on the company’s audited financial statements for the year ended March 31, 2025.
Regulatory Context
The announcement complies with Regulation 30 of SEBI (LODR) Regulations, 2015, and the details are as per SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11-Nov-2024.
About the Company
Nestlé India Ltd, a Swiss FMCG giant Nestlé S.A. subsidiary, is a leading player in the Indian packaged foods sector. Listed on NSE and BSE, it operates across categories like dairy, nutrition, beverages, and prepared dishes, with popular brands like Maggi, Nescafé, and Cerelac. The bonus share announcement may attract retail participation and improve the stock’s market depth.
REF:https://nsearchives.nseindia.com/corporate/NESTLEIND1_26062025100319_NILOutcomeofboardmeetingBonussigned.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
