News Connect Desk: Nestle India's 2024 stock split has caused a dip in share price as trading commenced in a 1:10 ratio ex-split, starting today. The subdivision was set by the Nestle India board with a record date of January 5, 2024.
Nestle India shares split 10 for 1, bringing the price down and making it easier for retail investors to join the brand growth.
The stock faced selling pressure early on Friday, opening lower and hitting an intraday low of ₹2,657 per share on the BSE, marking a nearly 2% decline from Thursday's closing price of ₹2,711.60 per share.
This development is expected to attract attention from investors and market observers as Nestle India's shares become more accessible. The board of directors fixed January 5, 2024, as the record date for the subdivision, meaning a ₹10 face value share will be split into ten shares with a face value of Re 1 each.
Nestle India disclosed the stock split record date to Indian stock market bourses, citing Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in their announcement.
The move by Nestle India Limited aims to make the stock more affordable, potentially increasing trade volume as the share price adjusts post-split, moving closer to ₹2,700 per share. Notably, the stock closed at ₹27,150 per share on the NSE on Thursday.
In its Q2FY24 results, Nestle India saw a significant 36% year-on-year increase in profits, reaching ₹908 crore, while its revenues grew by 9.6% to ₹5036 crore.
Foreign Institutional Investors (FIIs) reduced their stake in Nestle India from 12.38% in the preceding June quarter to 12.1% during the September 2023 quarter. Conversely, Domestic Institutional Investors (DIIs) increased their ownership from 9.05% to 9.32% over the same period.
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