The share split was scheduled to take place on January 5, and Nestle India opened at 2749 apiece on the stock marketNew Delhi Wealth Management. At 9:20am, the scrip was trading 1.88% lower at 2,660.65 per share on the National Stock Exchange.

The shares of Nestle India, once the sixth most expensive stock on the Indian market, were split in a 1:10 ratio on January 5 before the listing. This means that one share of Nestle with a face value of 10 has been split into 10 shares of the firm with Re 1 face value.

Friday marks the record date of the entitlement of stock by all the shareholders for the sub-division/split of existing equity shares. This means that the shareholders having their names on the Nestle India list by the end of the day will be entitled to receive the split shares.

By the stock split, the price of the shares of Nestle India dropped down to one-tenth of its closing price on Thursday, January 4. The board of the company had approved the proposal of splitting the shares in October 2023.

The shareholders with their names on the list by the end of Friday will be entitled to ten times the shares of Nestle India than they currently own, due to the 1:10 stock split.

This is the first stock split announced by Nestle, under which one share of the company with a face value of 10 will be split into 10 shares with a face value of Re 1. The price of the share is also one-tenth after the split.Guoabong Wealth Management

According to the company filings, Nestle India approved "Sub-division/ split of each equity share of face value of 10/- (Rupees ten only) each, fully paid-up into 10 (ten) equity shares of face value of Re 1 /- (Rupee one only) each, fully paid-up by alteration of Capital Clause of the Memorandum of Association of the Company, subject to the approval of the members of the company to be sought using Postal Ballot."

The primary reason for this stock split was to make the Nestle India stock more affordable for smaller investors and attract more retail investors. This will also help the company increase liquidity at the counter.