It does not dilute the ownership interests of existing shareholders.
Shares of Nestle India Ltd hit all-time highs on Friday as the company announced a stock split after its board meeting on Thursday.
A stock split is a corporate action to create more shares by dividing the existing shares into several new shares. It does not dilute the ownership interests of existing shareholders.
If you are an investor in Nestle India stock, here are all the details you need to know about the stock split announced by the company on Thursday.
— Nestle India’s board of directors has approved a 1:10 share split at its October 19 meeting.
— This means that each share of equity held by an investor with a face value of Rs 10 each will now be subdivided into 10 shares of a face value of Re 1 each.
— The stock split would reduce Nestlé India’s share price to one-tenth of its current price. This will make the shares more affordable for retail investors and thereby increase liquidity on the counter.
— The record date for the stock split of existing shares has not yet been announced. The company said shareholders would be informed later.
— Record date for a stock split is the date on which the company reviews its records to identify the shareholders eligible for the distribution of their existing shares.
— This is the first-ever stock split for FMCG giant Nestlé India.
— On Friday, after the stock split announcement, shares of Nestle India rose as much as 2.5 percent to hit an all-time high of Rs 24,735.50 on BSE.
— Heavy trading volumes were witnessed in the stocks, with the number of shares changing hands on BSE at the start of the afternoon session on Friday rising by five times the daily average.
