The board of FMCG maker Nestle India approved the issuance of bonus equity shares in the ratio of 1:1 to its existing shareholders on Thursday.

The bonus equity share of face value of Re 1 will be fully issued to equity shares of face value of Re 1 each, held by the members of the company, Nestle India said in a regulatory filing.

However, "record date for determining the entitlement of the members of the company to receive bonus equity shares will be announced in due course", it added.

On June 19, Nestle had announced that the company's board will consider the bonus shares issue.

The board of Nestle India, which is also having its annual general meeting (AGM) on Thursday, approved the issue of 1:1 bonus share, subject to final approval in the extraordinary general meeting (EGM) held by Nestle India on July 24, informed its outgoing Chairman and Managing Director Suresh Narayan.

"...the board of directors have declared a bonus of one equity share, or one equity share held..., which is subject to the approval of the members in the EGM to be held on 24th July, 2025," Narayanan said during his address at the AGM.

This is the first bonus issue after the year 1996, with subdivision of shares and NSE listing in 2024.

"We believe we have fulfilled a long-standing wish of all the shareholders," he said, adding that this will benefit over 1.6 lakh small shareholders holding less than five shares each.

The company believes that the proposed issuance of bonus equity shares "recognises the steadfast support and loyalty" of the shareholders throughout the company's growth and transformation journey.

"Moreover, it will enhance the liquidity of the shares while expanding the…retail investor participation," he added.

After this announcement, Nestle India shares jumped nearly 1 per cent in the morning trades.

Shares of Nestle India were trading at Rs 2,426.95 apiece on the BSE, up 0.94 per cent. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)