Shares of Nestle India Ltd soared nearly 5% to an all-time high on Tuesday after it announced a record date for determining the shareholder's entitlement for the stock split.
The maker of Maggi noodles has set Jan. 5 as the date for determining shareholders eligible for the first-ever stock split for the fast-moving consumer goods major, according to an exchange filing on Monday.
The stock split will reduce the share price of Nestle and bring it down to one tenth of the current price, making it more affordable for retail investors. This will enhance the liquidity at the counter.
Nestle's stock rose as much as 4.48% to Rs 25,444.85 apiece on the NSE. It was trading 4.38% higher compared to a 0.07% advance in the benchmark Nifty 50 as of 11:05 a.m.
The share price has risen 30% year-to-date. The total traded volume so far in the day stood at 6.6 times its 30-day average. The relative strength index was at 65.
Nineteen out of the 37 analysts tracking Nestle have a 'buy' rating on the stock, 12 recommend 'hold' and six suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 27.4%.
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