Maggi Maker Nestle's Expensive Stock Gets Affordable From Today After Historic Split

For the first time ever, Maggi maker Nestle India's stock is set to get split today.

Nestle To Go For First Ever Stock Split Today

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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.

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Nestle Shares Jump To All-Time High After Stock Split Announcement

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.

Reason Behind Nestle's Stock Split

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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

Which Is India's Most Expensive Stock?

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Last year, in June, Chennai-based tyre manufacturer MRF became the first ever stock in India to hit the historical mark of Rs 1 lakh per share. Currently, it is India's most expensive stock, priced at Rs 1,32,957 per share. This mammoth figure, too, for just one share, had left many investors questioning MRF stock¡¯s affordability. Let us take a deep dive and understand why India¡¯s most expensive stock, MRF, is priced so high. Click here to know why.

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