Shares of Nestle India were trading 4% above on 19 October after the company announced its first-ever stock split in the ratio of 1:10, the first such stock split announced by the FMCG company in India.

In its regulatory filing, the company said, “The board of directors approved sub-division/ split of each equity share of face value of Rs 10 each, fully paid-up into 10 equity shares of face value of Re 1 each, fully paid-up by alteration of capital clause of the Memorandum of Association of the Company.”

The stock split will increase the number of securities issues and increase liquidity. Each shareholder will get more security in direct proportion to the amount of shares held by the holder on the record date; their percentage of ownership in the company will not change.

The record date of the split of existing equity shares will be intimated later. This is the first time the company has announced such a stock split over a period of two decades.

Along with the stock split, the company has also announced its quarterly earnings for the July-September quarter and a second interim dividend of Rs 140 per share, for a total consideration of Rs 1,349.82 crore, and will be paid on 16 November 2023.

The FMCG giant’s net profit increased by 36% YoY to Rs 908 crore for the September quarter against Rs 668.3 crore reported in the same quarter of the previous fiscal year. The total revenue of the company saw a 9.6% YoY increase to Rs 5,036 crore from Rs 4,591 crore in the year-ago quarter.

At 3:30 pm, the shares of Nestle India closed 3.51% above at Rs 24,080 on NSE.