Nestle India Announces Stock Split: Here's All You Need To Know

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Nestle India Announces Stock Split: Here's All You Need To KnowNestle India Ltd shares hit their 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 in order to create more shares by dividing the existing shares into multiple new shares. It does not dilute the ownership interests of existing shareholders.

If you are an investor in Nestle India shares, here's all the details you need to know about the stock split announced by the company on Thursday.

-- Nestle India's board of directors, in their meeting held on October 19, approved a share split in the ratio of 1:10.

-- This means that each equity share that an investor holds of face value of Rs 10 each will now be subdivided into 10 equity shares of face value of Re 1 each.

-- The stock split would bring down Nestle India's share price to one-tenth of the current prices. This will make the stock more affordable for retail investors and, thereby, enhance liquidity in the counter.

-- The record date for the stock split of existing equity shares has not been announced yet. The company said that shareholders would be intimated later about the same.

-- Record date for a stock split is the date on which the company checks its records to identify the shareholders who are eligible for the division of their existing shares.

-- This is the first-ever stock split for FMCG major Nestle India.

-- On Friday, after the stock split announcement, Nestle India shares rose as much as 2.5 percent to hit a record high of Rs 24,735.50 on BSE.

-- Heavy trading volumes were seen in the stock, with the number of shares changing hands on BSE jumping by 5 times the daily average by the start of the noon session on Friday.