Nestle India shares experienced an impressive surge of over 4% during early trading on Wednesday following the company’s announcement regarding its intention to consider a stock split and an interim dividend during its forthcoming board meeting. Nestle’s share price soared by as much as 4.45%, reaching ₹23,333.65 per share on the BSE.
The renowned maker of Maggi noodles, Nestle India, disclosed that its board of directors would evaluate the proposal for the sub-division of shares, each having a face value of ₹10, on October 19. Additionally, the company’s board will also deliberate on the recommendation of a second interim dividend for the fiscal year 2023.
These deliberations are scheduled to take place at the board of directors meeting on Thursday, October 19, which will also cover an assessment of the company’s financial results for the September quarter.
If approved by the board and shareholders, the record date for the second interim dividend is set for November 1, according to the company’s statement. The statement further noted, “The second interim dividend for the year 2023, if declared, will be disbursed starting from November 16, 2023.”
It’s worth noting that a sub-division or split of existing equity shares is a measure that rewards shareholders and simultaneously enhances the liquidity of the stock.
In the prior quarter, ending June 2023, Nestle India reported a net profit of ₹698.3 crore, reflecting a substantial growth of 35.6% compared to ₹515 crore during the same period in the preceding year. The company’s revenue for the second quarter of calendar year 2024 witnessed a 15.4% increase, reaching ₹4,658.5 crore from ₹4,036.6 crore, year-on-year. Notably, the domestic sales growth of this FMCG giant stood at 14.6%.
Throughout this year, Nestle India’s share price has been on a commendable upward trajectory, with a year-to-date (YTD) gain of 16%. Furthermore, in the past month alone, Nestle India shares have seen an increase of over 4%.
As of 10:20 am, Nestle India shares were trading at ₹22,664.25 apiece on the BSE, marking a 1.46% increase.