Today a good movement has been seen in the share price of BSE. The stock had gone up to ₹6996 but now it is trading at ₹2335.
This is a fall of more than 66%. But, this fall is not due to any financial loss or performance of the company, but due to a corporate action—bonus issue.
📉 What is this 66% fall?
The reason behind this is that BSE had announced a bonus share issue in the ratio of 2:1 for its shareholders.
When a stock becomes “ex-bonus”, its price gets adjusted, which was seen today. So, today the stock came down from ₹ 6,996 to ₹ 2,335, but this price drop is just a technical adjustment and not a flaw in the company’s financials.
📊 BSE Ltd. Ki Financial Snapshot
Market Capitalization: ₹53,161 crore
52-Week High: ₹6,133.40
52-Week Low: ₹1,941.05
P/E Ratio: 56.63
EPS (TTM): ₹69.33
Dividend Yield: 0.38%
ROE: 23.31%
ROCE: 17.73%
Book Value per Share: ₹243.93
🧠 What is the Meaning of Investor for this?
Impact of Bonus Issue: Bonus issue increases the equity base of the company, but it has a direct impact on the stock price.
Adjustment in Stock Price: Stock price is adjusted after the ex-bonus date, which was seen today.
What should an investor do?: If you have shares of BSE Ltd., you will get new bonus shares. If you want to make new investments, take a decision keeping in mind the current price.
🔍 Conclusion
Today’s 66% fall in BSE Ltd. stock is a temporary technical adjustment, which has happened due to the bonus issue. It has no effect on the fundamentals or financials of the company. Investors should take their investment decisions after understanding this movement.
