HDFC Bank shares fall after adjusting to bonus issue — Here’s All You Need To Know

Shares of HDFC Bank Ltd., India’s largest private lender, declined on Tuesday, August 26, after adjusting for the bonus issue of shares that it announced earlier.Alongside its quarterly results last month, HDFC Bank had announced a bonus issue of shares in the ratio of 1:1. This means that those shareholders, who had shares of HDFC Bank as of Monday’s closing, will be eligible to avail the bonus issue of shares.

Shareholders will be entitled to one bonus share for every one share held.

For example, in case you had 100 shares of HDFC Bank, a 1:1 ratio would mean that you will be eligible for 100 bonus shares, taking the total share count in your demat account to 200. The stock price, would also adjust in proportion for the 1:1 bonus issue. The value of the shares in your demat account will remain the same, only the number of shares would be adjusted.This is HDFC Bank’s first ever bonus issue in its three-plus decade-long trading history. The lender had split one share of ₹10 each into five shares of ₹2 each back in 2011, and then split that one share of ₹2 each into two shares of ₹1 each back in 2019.

Along with HDFC Bank, shares of Karur Vysya Bank will also be trading adjusted for their bonus issue of shares from today’s trading session. The private lender had announced the issue of one bonus share for every five shares held on the record date. You can read more on that here.

Shares of HDFC Bank are trading 1.1% lower on Tuesday at ₹970.9.