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HDFC Bank's stock drops 62%: What's a bonus issue
HDFC Bank's stock took a sharp 62% dip on Tuesday, but don't worry—it's just a technical reset.
The drop happened because the bank gave out a 1:1 bonus issue, meaning every shareholder got one extra share for each they owned.
This move is meant to make shares more affordable and easier to buy, broadening retail participation without actually changing the bank's overall value.
How bonus issues work
After the bonus issue, HDFC Bank shares now trade around ₹982-986 each (as of August 26, 2025), reflecting the doubled number of shares in circulation.
If you held shares as of August 26, you're eligible for the bonus.
The goal? To help more people invest by lowering the price per share while keeping things fair for existing shareholders.