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Updated 23 May 2025 at 10:10 IST

BSE Share Price Adjusts Over 66% Post 2:1 Bonus Issue — Here's What It Really Means

BSE share price tumbled over 66% on Friday, alarming investors across trading apps. However, the sharp drop is a result of the stock turning ex-bonus following a 2:1 bonus share issue. Here's why the price adjustment is misleading, and how the stock remains a strong multibagger performer.

Reported by: Gunjan Rajput
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Shares of BSE Ltd witnessed a dramatic fall of over 66% on Friday, triggering concern among retail investors. However, the steep decline is a technical adjustment following the stock turning ex-bonus, not a sign of poor fundamentals or performance.

Why Did BSE Shares Fall?
BSE Ltd had earlier announced a 2:1 bonus issue, offering two bonus shares for every one share held with a face value of Rs 2 each. The record date to determine eligible shareholders was Friday, May 23, 2025, while the deemed allotment date is Monday, May 26, and the bonus shares will be effectively listed on Tuesday, May 27.

BSE Share Price Today
As a result, the share price adjusted downward to reflect the increased number of shares in circulation. On Thursday, BSE shares closed at Rs 6,996.50. On Friday, the stock opened at Rs 2,358, with a low of Rs 2,335, and was trading at Rs 2,360.50 at the time of writing the story.

This has led certain trading platforms to display a 66–67% fall, mistakenly comparing the adjusted price to the pre-bonus close.
Only those shareholders who held the stock as of the record date will be eligible to receive the bonus shares of BSE. Investors purchasing on or after the ex-date will not qualify for the bonus.

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BSE Share Price History 
Despite the optical dip, BSE shares have shown remarkable performance. On a post-bonus adjusted basis, the stock is up nearly 240% from its 52-week low of ₹705 hit in July 2024. The company's market capitalisation stands at Rs 96,029.22.

Bonus Share Issuance Details
The board of BSE approved the issuance of 27.46 crore bonus shares on March 30, 2025, and the corporate action is part of the company’s effort to reward its shareholders and improve liquidity in the stock.

What investors need to know 
The sharp fall showing up on some trading apps is not a real crash in BSE’s stock price. It’s simply a mathematical adjustment because the company gave 2 bonus shares for every 1 share held.

Think of it like this: If you had 1 share worth Rs 6,000, you now have 3 shares worth Rs 2,000 each. The total value of your investment remains the same — just divided across more shares.

So, there’s no loss in value, and BSE’s business hasn’t changed overnight. Investors should look at the adjusted price (around Rs 2,360) and not panic by comparing it to the old price (Rs 6,996.50) before the bonus issue.

Disclaimer

The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds

Published 23 May 2025 at 10:10 IST