City Union Bank shares fall 23% after 1-for-3 bonus issue
Business
City Union Bank's shares took a 23% dip on Friday after the stock adjusted for a 1-for-3 bonus issue, meaning shareholders got one extra share for every three they owned.
The price opened lower at ₹197.40 (down from ₹256.80), but quickly recovered by 5.6%, signaling that investors still trust the bank's performance.
City Union Bank 25% profit jump
This was City Union Bank's first bonus issue in eight years, funded from its securities premium reserves.
Bonus issues don't change how much your investment is worth, but they do make shares more affordable and boost trading activity.
Plus, with the bank posting a strong 25% jump in profits last quarter, confidence among investors remains high despite the initial price dip.