Being one of the most expensive stock in India, Nestle India shares will soon be more affordable for the general public after the stock split of the company is finalised on Friday, January 5.
Nestle India is the sixth most expensive stock in India, and is known to give steady profits. While Nestle stock has been out of reach for small scale investors, they will soon be able to buy their share of the company after the stock split.
The record date of Nestle India stock split is January 5, when the shares of the MNC FMCG firm will go ex-split in 1:10 ratio. This means that a person owning one share of Nestle India on record date will become the owner of 10 shares, as per the subdivision.
The same has been done after the board of Nestle India approved splitting one share of the company with a face value of ₹10 into ten total shares with a face value of Re 1. This means the number of shares in Nestle will soon grow by 10x.
In a statement, Nestle had said that the split is being done to enhance the liquidity of the company’s equity shares and to encourage participation of retail investors by making equity shares of the company more affordable.
Details of Nestle stock split
The stock split of Nestle India is being done in the ratio of 1:10, which means that one share of the company will be split into ten, making the shares more affordable. This means that Nestle will soon slip below the 6th rank in the list of country’s most expensive shares.
This means that the price of one share of Nestle India will soon be one tenth of the current share price. Nestle India shares on Thursday are trading at a price of ₹27,090.25, nearly two percent up from yesterday’s closing price.
After the stock split, it is expected that the share price will be one tenth i.e. ₹2800 apiece approximately. This means that the feasibility of owning Nestle stock will increase, attracting more retain investors.
Currently, Nestle India is ranked sixth on Dalal Street, while the top spot is reserved by MRF, the share price of which is ₹1.3 lakh apiece. The only shares priced higher than Nestle are MRF, Page Industries, Honeywell Automation India, 3M India and Shree Cement.