Nestle India share price: Shares of fast-moving consumer goods (FMCG) maker Nestle India opened at ₹1,122 apiece on the National Stock Exchange on Friday, August 8, as against its last closing price of ₹2,234.60, signalling a 49.7% downtick over the last close. But is the stock really down by a whopping 50%?
Well, the answer is no. Today, August 8, is the record date for the 1:1 bonus share issue announced by Nestle India. This means that investors who held one share of the company of ₹1 are entitled to one more share of ₹1. The total number of shares in the market doubles, but the price per share is adjusted downward, keeping the overall value of the investment the same.
So, the 50% drop is not actually a loss in value — it’s just a mathematical price adjustment due to the bonus.
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