The shares of FMCG major Nestle India rose over 5% on Tuesday, December 19, a day after the company announced January 5 as the record date for its stock split.
At the last count, the stock was trading 4.3% higher, snapping a three-day losing streak. The stock has gained in five out of the last 10 trading sessions and is up over 4% in 2023 so far.
Earlier on October 19, the FMCG's board had approved a stock split in the ratio of 1:10. This means each share that an investor holds will be subdivided into 10 shares.
This is the first time the company has announced a stock split in at least two decades.
Nestle India is the India unit of Nestle S.A. and is involved in the manufacturing of branded milk products and other food products. It is also known for manufacturing Maggi noodles, soups, and sauces.
In the
quarter ended September, the company reported a revenue of ₹5,036.8 crore, up 9.5% as compared to the previous session. Nestle India reported its earnings before interest, taxes, depreciation, and amortization (EBITDA) at ₹1,225 crore, up 21.3% year-on-year. The FMCG's board also approved an interim dividend of ₹140 per share.
