Nestle India Shares Drop 50% in Value as Bonus Issue Takes Effect

a's shares became 50% cheaper as the company’s 1:1 bonus share issue came into effect, marking its first bonus issue since 1996. The FMCG giant’s board had previously approved the issuance of bonus equity shares in a 1:1 ratio, granting one bonus share of Re 1 face value for every fully paid-up equity share held. This initiative was funded by capitalizing over Rs 96.41 crore from the company’s retained earnings. At around 9:35 AM today, Nestle India’s shares were trading 0.58% lower at Rs 1,111.30 on the NSE, reflecting the adjustment post-bonus issue. This follows the company’s subdivision of shares and listing on the NSE in 2024, further enhancing its market presence. The bonus issue is expected to improve liquidity and make the stock more accessible to retail investors, reinforcing Nestle India’s commitment to delivering shareholder value.