Did Nestle India Shares Tank 50%? Here's the Truth

Shares of fast-moving consumer goods (FMCG) giant Nestle India opened at Rs 1,122 per share on the NSE as against Rs 2,234.6 apiece in the previous session. That’s nearly 50 per cent decline. But has its value halved in just one day? The answer is no.

The stock turned ex-date for bonus issue in the ratio 1:1 today. The face value of Nestle India shares were Rs 2, which after the bonus issue was split into two shares of Re 1 each. This means that shareholders who held one share of the FMCG company will get one additional share of the company.

Because of the bonus issue, the share price adjusted accordingly. The total value of investment for shareholders remains the same, neither there is any change in the company’s market capitalisation due to this adjustment.

For instance, if a shareholder had held 50 shares of Nestle India as of the record date, their shares would have doubled to 100 after the 1:1 bonus issue, however, their investment value remained the same. Hence, there is no actual gain or loss, only the price has been adjusted to reflect the increased number of shares after the bonus issue

At close, Nestle India share price was Rs 1,096.50 apiece on the NSE, which is just 1.86 per cent down from the adjusted previous closing price.

Nestle India Bonus Issue

The total number of bonus shares proposed to be issued was 96,41,57,160 of face value Re 1, amounting to Rs 96.41 crore. The bonus shares will be issued by capitalising an equivalent amount from the company’s retained earnings. As per the audited financial statements for the year ended March 31, 2025, the company had Rs 4,008.95 crore in free reserves.

Post-bonus, Nestle India’s paid-up and subscribed share capital will increase from Rs 96.41 crore to Rs 192.83 crore.

The bonus shares are expected to be credited on or before August 25, 2025, Nestle India’ said in its exchange filing.

Nestle India Bonus Share History

This is the first-ever bonus issue by Nestle India. Companies issue bonus shares mainly to make their stock more affordable and attractive to investors. It is also seen as a signal of the company’s strong financial health and confidence in future earnings.

Nestle India Share Price History

Nestle India shares have underperformed the broader market across key timeframes. According to BSE Analytics, the FMCG major has delivered 1.16 per cent returns year-to-date (YTD). Over the past one year, the stock is down 11.85 per cent, while it has gained 30.94 per cent over the last five years.

Meanwhile, the benchmark Sensex has returned 1.72 per cent YTD, 1.23 per cent over the last one year, and 109.93 per cent gain over five years.