Nestle Stock Split: In a strategic move, Nestle India, currently one of the most expensive stocks in the country, is set to undergo a significant stock split on January 5. The company, known for its steady profits, aims to increase market accessibility for small-scale investors by subdividing its shares.
Record Date and Split Ratio
The record date for Nestle India’s stock split is January 5, where the multinational FMCG firm’s shares will undergo a 1:10 split ratio. This implies that a shareholder with one Nestle India share on the record date will soon hold ten shares, following the subdivision.
The decision to split one share with a face value of ₹10 into ten shares with a face value of Re 1 was approved by Nestle India’s board. This move will lead to a tenfold increase in the total number of shares in Nestle.
Purpose of the Split
Nestle India emphasized that the split aims to enhance the liquidity of the company’s equity shares and encourage the participation of retail investors by making the shares more affordable.
Details of the Stock Split
The stock split of Nestle India is set at a ratio of 1:10, making the shares more budget-friendly. Currently, Nestle India shares are trading at ₹27,090.25, and after the split, each share is expected to be approximately ₹2,800.
This move will likely shift Nestle India’s position in the list of the country’s most expensive shares, making it more attractive to a broader base of retail investors.
As of now, Nestle India holds the sixth position on Stock market in India, with MRF claiming the top spot at ₹1.3 lakh per share. Nestle India‘s shares currently rank among the highest-priced shares in the market, alongside MRF, Page Industries, Honeywell Automation India, 3M India, and Shree Cement.
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