If you have seen the share price of HDFC Bank today, then you must have been shocked because the stock seems to have a decline of about 50%. Till yesterday, the stock which was close to 1,964, is seen around 985 today. In such a situation, the question is whether the bank shares have really declined such a big decline.
Let us know that the decline in shares of HDFC Bank is actually a technical change, which is due to giving bonus shares. This is not a loss. HDFC Bank has given a bonus of 1: 1, that is, if you have 10 shares, now you will have 20 shares. After which the share prices were half reduced due to price adjustment.
Prices of shares reduced by bonus share
Bonus share means that the company gives new shares to its existing shareholders for free, but after that the share price decreases because the number of shares increases. For example, if you had 1 shares of ₹ 2000, and now you have 2 shares of ₹ 1000-₹ 1000, then the total value remains the same, the value of the share per share is reduced.
Share price fell, but no loss
Today the share price reached Rs 985, which is 50% less than tomorrow’s closed price. But this does not mean that you have been harmed. This is just a mathematical adjustment. This has doubled the number of your shares and the price has been reduced by half. But the total value is the same. After the price adjustment, there is no effect on the company’s market cap due to the fall of the share price.
HDFC Bank Bonus Share: What is a record date
HDFC Bank has held a record date on August 26, 2025 to give 1: 1 bonus share. This means investors who have shares till this date, they will get bonus shares. Because there is a T+1 settlement in the market (ie after a day the share comes to your account), so those who had purchased shares till August 25 are entitled to bonus.
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