Nestle India’s share price started to decline as soon as the stock started trading ex-split on Friday. Following a challenging morning, it dropped as low as Rs 2,657 per share on the Bombay Stock Exchange (BSE). From the equity share’s closing price of Rs 2,711.60 on Thursday, this represents a fall of about 2%.
Due to their increased affordability, investors and market observers are likely to pay attention to Nestle India’s shares after the stock subdivision.
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The board of directors of Nestle India Limited has determined that January 5, 2024, will be the record date for the 1:10 stock split. Thus, from one Nestle India share, which has a face value of Rs. 10, ten shares, each valued at Rs. 1, will be produced.
Nestle India announced the stock split record date. “Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the company has fixed Friday, January 5, 2024, as the “record date” for determining the entitlement of equity shareholders for the purpose of subdividing or splitting existing equity shares of the company,” the company said.
The Nestle India board purposely lowered the stock price. Since trading is expected to increase, the share price should steady at around Rs 2,700 per share once the stock divides 1:10. Nestle India shares traded at Rs 27,150 on the NSE on Thursday.
Profitability rose 36% YoY to Rs 908 crore in Nestle India’s Q2FY24 data, despite revenues rising 9.6% to Rs 5,036 crore.
In June and September 2023, foreign institutional investors (FIIs) owned 12.38 and 12.1% of the shares, respectively. DIIs grew their holdings from 9.05 percent to 9.32 percent during the same time.
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