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Nestlé India has declared its first-ever 1:1 bonus issue, setting 8 August 2025 as the record date. Shareholders holding shares on or before this date will receive one free share for every one share held, effectively doubling their holdings.
The company aims to improve liquidity in the stock and make its shares more affordable for retail investors. After the announcement, the share price appeared to drop by over 50%, but this was only due to a technical adjustment following the bonus — the overall investment value remains unchanged.
What Does a 1:1 Bonus Issue Mean?
A 1:1 bonus issue means that if you own 1 share, you will get 1 additional share free. This doubles your total shares without requiring any extra payment from you.
Why Did the Price Drop?
When the number of shares doubles, the market price automatically adjusts to half to keep the total value the same.
For example:
- Before Bonus: ₹2,234 × 100 shares = ₹2,23,400
- After Bonus: ₹1,117 × 200 shares = ₹2,23,400
Your investment value remains exactly the same.
Benefits for Investors
- Higher Liquidity – Easier to buy and sell shares.
- More Affordable – Lower per-share price allows more retail participation.
- Strong Financial Signal – Shows company confidence in long-term growth.
When Will You Get the Bonus Shares?
- Record Date: 8 August 2025
- Bonus shares are expected to be credited to Demat accounts within 3 business days — by 12 August 2025.
Outcome
Nestlé India’s first 1:1 bonus issue is a significant move that not only rewards existing shareholders but also attracts more retail investors. The price adjustment may look like a fall, but in reality, it’s a technical change with no loss in portfolio value.
Source: NSE
