Mumbai, August 26: It is reported that stocks of HDFC Bank Limited (BSE: HDFCBANK) fell by 50 per cent today, August 26, as the shares turned ex-bonus. Notably, the shares of HDFC Bank turned ex-bonus in the ratio of 1:1 today. After adjusting for the bonus issue, stocks of HDFC Bank Limited (BSE: HDFCBANK) opened at INR 982.25 on the BSE after unadjusted closing at INR 1,964.50. It is reported that the HDFC Bank's stocks appeared to be down by 50 per cent when comparing the opening price of today, August 26 and the closing price of Monday, August 25.

Know Why HDFC Bank Shares Crash Is Not Real

However, that is not entirely true. Stock market participants stated that several trading apps are likely to be displaying unadjusted prices, thereby leading to an impression of a steep fall. In simple terms, the shares of HDFC Bank have not fallen by 50 per cent. They appear to be down by 50 per cent due to the split of stocks. It must be noted that August 27 is the record date for the ex-bonus date of HDFB Bank's shares. Stocks to Buy or Sell Today, August 26, 2025: Vodafone Idea, Muthoot Finance, Tata Motors Among Shares That May Remain in Focus on Tuesday.

However, as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will remain closed on Wednesday, August 27, on account of Ganesh Chaturthi, the HDFC Bank is expected to determine the eligible shareholders for the bonus issue tomorrow. Post this, the additional shares are expected to be credited to investor accounts.

With its announcement of a bonus issue, HDFC Bank has joined the growing list of BSE500 companies, such as Nestle India, Ashok Leyland, Samvardhana Motherson International, Bajaj Finance, Container Corporation of India, and Anand Rathi Wealth, among others, that have already announced bonus issues this year. Traders and investors appreciate bonus shares, which are generally issued free of cost, as they come with the same face value as existing stock. Stock Market Holidays in September 2025: NSE and BSE To Remain Closed for Trading for 8 Days Next Month; Check Full List of Share Market Holidays Here.

Bonus shares are usually funded out of free reserves. That said, it's important to know the impact of bonus issues. Bonus shares increase the number of outstanding shares, trim free reserves of the stocks, and lower earnings per share (EPS), thus prompting a downward adjustment in share price.

(The above story first appeared on LatestLY on Aug 26, 2025 10:35 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).