Nestlé India Shares Climb 2.1% as Board to Weigh Bonus Share Issue on June 26

Shares of Nestlé India rose 2.1 percent on June 20, 2025, following the company’s announcement that its board will meet on June 26 to consider a proposal for issuing bonus shares. The move is aimed at enhancing liquidity and attracting broader retail participation, especially as the stock has underperformed broader indices over the past year.

Key highlights from the announcement

• Nestlé India’s stock touched an intraday high of Rs 2,356.80 on the NSE, up from the previous close of Rs 2,313.30
• The board meeting scheduled for June 26 will evaluate the bonus share proposal, which could improve affordability and trading volumes
• In compliance with regulatory norms, the trading window for insiders has been closed from June 19 to June 28
• The announcement was made after market hours on June 19, triggering a positive reaction in early trade the following day

Market context and performance

• Despite the recent uptick, Nestlé India shares have declined around 8 percent over the past 12 months, underperforming the Nifty 50 and Nifty FMCG indices
• However, the stock has gained approximately 7 percent in 2025 year-to-date, supported by steady earnings and product category growth
• The company is also set to exit the BSE Sensex on June 23 as part of the index’s semi-annual rebalancing, alongside IndusInd Bank

Financial backdrop and growth outlook

• For the March 2025 quarter, Nestlé India reported a 5.2 percent year-on-year decline in net profit to Rs 885 crore, while revenue rose 4.5 percent to Rs 5,504 crore
• Domestic sales grew 4.2 percent, led by strong performance in powdered beverages and confectionery, particularly KitKat
• The company flagged firm commodity prices for coffee and milk, while cocoa prices remained elevated despite slight corrections

Future outlook

The proposed bonus issue, if approved, could serve as a strategic lever to boost investor sentiment and improve stock liquidity. As Nestlé India navigates index reshuffling and commodity headwinds, the move signals management’s intent to reward shareholders and reinforce long-term confidence.

Sources: Economic Times, Business Standard, Moneycontrol, NSE India, Nestlé India filings.