For the first time ever, Maggi maker Nestle India's stock is set to get split today.
With January 5 (today) as the record date, the?expensive?shares of Nestle India are going to be split in a 1:10 ratio. This means that if you own 1 share of Nestle India as of the record date, the sub-division will leave you with 10 shares. Nestle India's shares have dropped about 1.5% already today with the stock split happening. Nestle India share price is currently trading at Rs 2678.95 per share, i.e., 90% down from the?Rs 27,150.05 share price at which it had closed on NSE yesterday?before the stock split.??
In a historic decision,?Maggi maker Nestle announced its first ever?stock split?in India in October.?
Last year, in October, when Nestle's board approved splitting 1 share of face value of Rs 10 each into 10 shares of Rs 1 face value each, the Maggi maker's shares soared to an all-time high.
In a historic decision,?Maggi maker?Nestle?has announced its first ever stock split?in India in October 2023.?
To encourage more retail participation in its stock, Nestle India announced that its board has approved a stock split in the ratio of 1:10. This means that one share with a face value of Rs 10 would be split into 10 shares with a face value of Rs 1 each.
For the uninitiated, a?stock?split?happens when a company increases the number of its shares to boost the stock's liquidity. The company usually carries out the stock split by issuing additional shares to shareholders.?
Following the split, share prices were reduced to 1/10th of the current price, as per the ET report. Unlike the US stock market, where fractional ownership?is allowed, the minimum ticket size for India's stock market investors is one share.?So, this can potentially attract a larger number of retail investors who may find it more feasible to buy shares at a lower price, contributing to increased retail participation in the stock, analysts say.
Also Read:?The Untold Story Of Julius?Maggi: The Man Behind Iconic Noodles Maggi
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