Nestle India touches record high after company fixes record date for 1:10 stock split

The stock price of the Maggi maker is likely to get a boost post the stock split, as higher liquidity and a lower price point per share will increase the shareholder base.

The bluechip stock has outperformed the BSE Sensex over a 1-year period with gains of over 27 per cent.

Shares of the MNC company Nestle India in Tuesday's trade (December 19) marked their fresh record high of Rs 25,527.80, with gains of 4.81 per cent.

The packaged foods major notched an all-time high after it fixed January 5, 2024 as the record date for its maiden 1:10 share split. The stock price of the Maggi maker is likely to get a boost post the stock split, as higher liquidity and a lower price point per share will increase the shareholder base.

This is to inform you that the company has fixed Friday, 5th January 2024 as the “Record Date” for determining entitlement of Equity Shareholders for the purpose of sub-division/ split of existing equity shares of the company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid-up, will be sub-divided into 10 (ten) equity shares having face value of Re. 1/- (Rupee one only) each, fully paid-up, read the company's filing with the exchanges.

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Record date is the date based on which investors' eligibility for split shares is determined.

The process of dividing the company's outstanding shares into further smaller shares is known as stock splits. In a split, although the number of shares outstanding increases by a specific multiple, the total value of the shares remains the same compared to pre-split amounts, because the split does not add any real value.

Earlier, post the company's Q2 show, domestic brokerage suggested 'Accumulate' rating on the counter with a target price of Rs 26,111. The company has reported strong margin performance in the quarter, and will continue to focus on profitability along with topline growth. Premiumization will also be an important driver of growth and profitability improvement, said the brokerage.

The bluechip stock has outperformed the BSE Sensex over a 1-year period with gains of over 27 per cent. Meanwhile, the headline index during the same period has logged over 17 per cent gains.

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