The price of Nestle India, one of the most expensive shares of India, is getting cheaper from today. Now retail investors will also be able to invest in this share with great ease. The company had recently announced to split its stock. The record date of Nestle’s stock split was fixed as 5 January 2024.
One share is costlier than Rs 27 thousand
Currently the price of one share of Nestle India is Rs 27,116.40. On Thursday, January 4, a day before the split record date, Nestle India shares jumped 1.81 percent on NSE to reach its new 52-week high. In terms of share price, till now Nestle India was the sixth most expensive share in India. Only MRF Limited, Page Industries, Honeywell Automation, 3M India and Shree Cement have more expensive shares than Nestle India.
Continuously rising prices after the announcement
FMCG segment giant Nestle India. Had announced stock split on December 19. That day the stock jumped by more than 5 percent and crossed Rs 25,700. Since then, there was a continuous rise in the prices of Nestle India. The company’s board had earlier approved the proposal to split the shares in October. This is the first split of Nestle India’s shares.
10 shares will be given in exchange for 1.
Nestle India’s shares are being split in the ratio of 1:10. This means that the shareholders who held one share of Nestle India till the record date will now have 10 shares. This will increase the number of issued and outstanding shares of Nestle India. This will ultimately prove helpful in increasing liquidity. However, this will not make any difference to the mcap of the company or the total value of the shares.
There is no system of fractional shares in India
If you invest in any stock in the Indian stock market now. At least one share has to be purchased. At present, there is no buying and selling of fractional shares in the Indian market like the American market. Due to this, expensive shares of the Indian market become out of reach of retail investors. For example- one share of Nestle India is currently worth more than Rs 27 thousand. India’s most expensive stock MRF is worth around Rs 1.30 lakh. In such a situation, retail investors stay away from these shares. Nestle India will benefit from higher retail participation after the stock split.
