Nestle India Makes History: Free Shares for All in 1:1 Bonus Issue

Image Source: Goodreturns

Nestle India just made a big move that’s got investors talking. For the first time since it was listed, the company’s board has approved a 1:1 bonus share issue. In simple terms, if you own one Nestle India share, you’ll soon get another one for free.

Key Highlights:

The board gave the green light to this bonus issue on June 26, 2025. Every shareholder on the record date (to be announced soon) will receive one extra share for each share they already own.
Nestle will fund this bonus issue by using about ₹96.41 crore from its retained earnings. Of course, shareholders still need to approve the plan, but that’s usually a formality.
This is a historic move for Nestle India. The company has never issued bonus shares before, though it did split its stock in January 2024, making shares more affordable for smaller investors.
Nestle India has a reputation for rewarding its shareholders. Since the stock split, it’s paid out ₹42.5 per share in dividends, and there’s another ₹10 per share dividend coming up, with July 4, 2025, as the record date for that payout.

Investors seem happy with the news. The stock closed up nearly 2% at ₹2,409.05 on the BSE after the announcement.

The bonus share issue is expected to make Nestle India’s stock more liquid and appealing, especially for long-term investors.

On the business side, Nestle India is in good shape. The company reported sales of ₹20,077.5 crore and a net profit of ₹3,314.5 crore for FY25, showing solid growth in the FMCG sector.

Source: NSE filing, GoodReturns, Fortune India, News18, CNBC-TV18