Nestle India stock split: Split shares will be awarded to all shareholders of Nestle India whose names are on the list as of today, the end of the record date.
Nestle India Ltd.’s shares were the subject of attention in Friday’s trading since the FMCG company’s stock split expiration date was today. In order to identify Nestle India stockholders who qualify for the stock split, today is also the record date. Split shares will be awarded to all Nestle India stockholders whose names are on the list as of today, the end of the record date.
In a filing made in October, Nestle India stated that its board “subdivided or split each equity share of face value of Rs. 10/- (Rupees ten only) each, fully paid-up into 10 (ten) equity shares of face value of Rs. 1/- (Rupee one only) each, fully paid-up by alteration of the capital clause of the Memorandum of Association of the Company, subject to the approval of the members of the company to be sought by means of postal ballot.”
Later, Nestle India set Friday, January 5, as the “record date” for determining the entitlement of equity shareholders for the purpose of splitting or subdividing the company’s existing equity shares. This will result in the division of one equity share, valued at Rs. 10 each and fully paid up, into ten equity shares, valued at Rs. 1/- (one only) each and fully paid up, ranking pari passu in all respects. The decision was made by shareholders via postal ballot on December 8.
Preview of Nestle India’s Q3 results
Kotak Institutional Equities stated in its preview note for the December quarter that the FMCG company is well-positioned to provide robust revenue growth (9.7% YoY) within the FMCG group, driven by 7% volume and a 2.7% pricing increase. True, the high price rise in Maggi LUP had an effect on base-quarter volumes.
“We project 10.1% (1.5%) YoY growth in exports and domestic income. We anticipate GM to be about flattish sequentially at 56.6% (170 bps YoY), up 10 bps QoQ, partially helped by deflation in the prices of dairy, edible oils, wheat, and packaging, according to Kotak.
Kotak projects Nestle India’s EBITDA margin to be 23.8 bps YoY, up 80 basis points QoQ, despite higher A&P expenses offsetting the growth in gross margin.
Date of the Nestle India stock split record
Nestle India notified Indian stock exchanges of the stock split record date, stating, “In accordance with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Company has fixed Friday, January 5, 2024, as the “Record Date” for determining entitlement of equity shareholders for the purpose of sub-division or split of the company’s existing equity shares, such that 1 (one) equity share with a face value of Rs. 10/- (Rupees ten only) each, fully paid-up, will be subdivided into 10 (ten) equity shares with a face value of Re. 1/- (Rupee one only) each, fully paid-up, ranking pari-passu in all respects. This was approved by the equity shareholders through postal ballot on December 8, 2023, as already intimated to the stock exchange.
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