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Why BSE Share Price Looks Cheaper on May 26: Bonus Issue Explained

Written by: Neha DubeyUpdated on: May 26, 2025, 4:36 PM IST
BSE stock appears cheaper on May 26 due to a 2:1 bonus issue, not a crash. The price was adjusted to reflect bonus shares, with no loss in value.
Why BSE Share Price Looks Cheaper on May 26: Bonus Issue Explained
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Shares of BSE Limited were trading at ₹2,474.50, marking a 1.08% gain or ₹26.50 at 12 noon on the NSE from the previous close of ₹2,448. The stock opened higher at ₹2,480 and touched an intraday high of ₹2,526, with a low of ₹2,460.

The volume-weighted average price (VWAP) stood at ₹2,495.57, indicating strong trading activity following the recent 2:1 bonus issue.

Before the 2:1 bonus issue, BSE Limited’s share price was approximately ₹7,015 as of May 23, 2025.

BSE Stock Price Drop Is Due to Bonus Issue

Shares of BSE Ltd. were actively tracked on Friday, May 23, as the stock traded ex-bonus following its 2:1 bonus share issuance. The stock’s price appeared to have sharply dropped from ₹7,015 to ₹2,358 causing confusion among retail investors. However, this was purely a technical adjustment to account for the bonus shares, not an actual crash in value.

The revised share price reflected the 2:1 bonus issue meaning investors received 2 additional shares for every 1 held. This recalibration caused some platforms to erroneously show a 66% fall in BSE’s share price.

Importantly, the value of investor holdings remained unchanged, and the price movement was entirely due to the increased number of shares in circulation, not a loss in the company's fundamentals.

BSE Bonus Issue Key Dates 

  • Record Date: May 23, 2025
  • Bonus Share Allotment: May 26, 2025
  • Bonus Share Listing: May 27, 2025

This marks BSE’s second bonus issue since its 2017 listing. The board approved the current bonus in March 2025, involving the issuance of 27.46 crore shares with a face value of ₹2 each.

BSE Shares Still Gaining Ground

Despite the adjustment, BSE stock rose over 2% intraday on Friday and was trading around ₹2,389. The company’s market cap touched ₹96,000 crore, cementing its position as one of India’s top wealth creators. Even on an adjusted basis, BSE stock is up more than 240% from its 52-week low and just 6% off its recent high.

BSE Q4 FY25 Results Highlights

Strong fundamentals are behind the bullish sentiment:

  • Q4 Profit: ₹494 crore, up 362% YoY.
  • Revenue: ₹847 crore, up 75% YoY.
  • EBITDA Margin: 70%, indicating robust profitability.
  • Historical Returns: 5,200% gain in 5 years.
  • Generous Shareholder Payouts: Dividends and 2 buybacks.

SEBI Derivatives Expiry Rule in Focus

However, the stock did see some temporary pressure amid reports that SEBI is considering shifting weekly index expiry to Tuesdays (currently Thursday on BSE), potentially impacting derivative volumes. A circular from the regulator is awaited.

Read More: SEBI Chair Tuhin Kanta Pandey Confident of Quick Resolution on NSE IPO Issues.

Conclusion

The sharp drop in BSE Limited’s stock price on May 26 may have startled some investors, but it was simply a mathematical adjustment reflecting the 2:1 bonus issue not a reflection of any weakness in the company. In fact, BSE continues to show strong fundamentals, robust profit growth, and market leadership, making it a standout performer in the Indian equity space.

As always, investors should focus on underlying business performance rather than short-term price movements caused by corporate actions. The adjusted price only reflects a higher share count, not a decline in value making BSE stock appear cheaper, but just on paper.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: May 26, 2025, 4:36 PM IST

Neha Dubey

Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.

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