HDFC Bank contemplates 1st bonus share issue
HDFC Bank is about to shake things up: its board meets this Saturday to talk about giving out bonus shares for the first time ever, plus a possible special dividend.
They'll also review their latest quarterly results.
This is a big change for the bank, which usually sticks to stock splits—the last one was back in 2019.
Shift from stock splits to bonus shares
For years, HDFC Bank has only done stock splits—like turning one ₹10 share into five ₹2 shares (2011), and then two ₹1 shares (2019)—to make buying in easier for regular folks.
Now, with the bonus issue on the table and after selling ₹10,000 crore worth of its HDB Financial Services shares during an IPO, it's clear they're looking to boost both capital and shareholder value.
Stock price movement
Just before the news broke, HDFC Bank's stock climbed 0.8% to ₹1,998—almost hitting its yearly high.
With all eyes on Saturday's meeting and what it means for returns or future growth, investors might want to keep tabs on these moves.