BSE Shares Drop 66% as Stock Trades Ex-Bonus for 2:1 Issue—What Investors Need to Know

Investors woke up to a stunning 66% drop in BSE shares price on May 23, 2025, as the stock traded ex-bonus following its 2:1 bonus issue. While the sudden decline raised concerns, experts clarified that this was a technical adjustment rather than a market crash.

Understanding the 2:1 Bonus Issue

BSE had announced a 2:1 bonus share issue, meaning shareholders would receive two additional shares for every one share held. The record date for determining eligibility was May 23, 2025, and the stock turned ex-bonus on this date.

Before the adjustment, BSE shares closed at ₹6,996.50. On May 23, the stock opened at ₹2,358, aligning with the 2:1 bonus ratio. This adjustment is a standard procedure in the stock market to account for the issuance of bonus shares and does not indicate a loss in shareholder value.

BSE shares – Market Reaction & Investor Sentiment

Despite the initial confusion, BSE shares showed resilience. After the price adjustment, the stock rose over 2% intraday, reaching ₹2,360.50. The company’s market capitalization stood at approximately ₹96,029 crore, and the stock remained 6% below its adjusted 52-week high of ₹2,529.33, achieved earlier in the week.

Some trading platforms did not immediately reflect the adjusted price, leading to misleading visuals of a steep decline. This discrepancy resulted in panic selling, even though the actual value of investors’ holdings remained unchanged.

BSE’s Financial Strength & Growth Prospects

BSE recently announced robust Q4 FY25 earnings, reporting a 362% year-on-year rise in net profit. Net profit for the quarter surged to ₹494 crore, compared to ₹106 crore in Q4 FY24.

Other key financial highlights:

• Revenue from operations jumped 75% YoY, increasing from ₹484 crore to ₹847 crore.
• Operating EBITDA more than tripled to ₹594 crore, with EBITDA margins soaring to 70%.
• BSE shares have surged over 5,200% in five years, making it one of the market’s biggest multibaggers.

Investor Strategy: What Should You Do?

For investors, the bonus issue presents an opportunity to hold onto their shares rather than panic sell. Since the stock price adjustment does not impact the fundamental value, long-term investors should focus on:

• Monitoring post-bonus trading trends.
• Assessing BSE’s financial performance in upcoming quarters.
• Avoiding impulsive decisions based on misleading price visuals.

Conclusion

The 66% drop in BSE shares on May 23, 2025, was a technical adjustment due to the 2:1 bonus issue, not a market crash. Investors should remain calm, focus on long-term growth, and leverage BSE’s strong financial performance for future gains.

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