HDFC Bank Shares “Crash” Over 50%—In One Day What Next
On Tuesday, HDFC Bank’s stock appeared to plunge over 50%, sparking panic on Dalal Street.
The sharp fall is a technical adjustment following the bank’s 1:1 bonus share issue. Under this plan, every shareholder receives one extra share for each share held, doubling the number of shares in circulation. While the stock price adjusts downward to reflect this, the overall value of investors’ holdings remains unchanged.
How It Works
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Previous Price: ~₹2,600
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Price After Bonus Adjustment: ~₹982–986
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Investor Example: Holding 100 shares at ₹2,600 → now 200 shares at ₹1,300 each → total value still ₹2.6 lakh
Why It Happened
Bonus issues are common corporate actions. They make shares more affordable, improve market liquidity, and signal confidence in long-term growth. For HDFC Bank, this move is part of a strategy to expand its shareholder base without affecting market capitalization.
Key Dates
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Record Date: August 26, 2025 – shareholders eligible for bonus
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Last Purchase Date: August 25, 2025 – to qualify under T+1 settlement
The Takeaway
Despite headlines screaming “crash,” this drop is purely mathematical. Investors’ wealth is intact, and the move may ultimately boost participation and liquidity in the stock.