Pidilite Share Price: Did It Actually Crash by 50% on September 23?

On September 23, 2025, Pidilite Industries stock witnessed a sharp decline of over 50%, but not for the reasons one might expect. Instead of market fundamentals weakening, this drop in share price was the result of a corporate action,  a 1:1 bonus issue aimed at improving stock liquidity and attracting more retail investors.

Why Pidilite Shares Fell by Over 50%

Shares of Pidilite Industries fell to ₹1,493.35 from the previous close of ₹3,037.75 after the company went ex-bonus on September 23, 2025. This reflects a 51% price drop. However, this movement is a technical adjustment due to the 1:1 bonus share issue rather than a real value decline.

Each shareholder received 1 additional share for every 1 held, effectively doubling the total number of outstanding shares and halving the per-share price to maintain the company's valuation.

Record Date and Trading Cycle

The record date for the bonus issue was set as September 23, 2025. To be eligible, investors had to buy the stock by September 22 under the T+1 settlement cycle. On the record date, the stock began trading ex-bonus, leading to this significant correction in market price.

Historical Context of Bonus Issues

This isn't Pidilite’s first bonus issue. The last such issuance occurred in March 2010. The latest 1:1 issuance follows the same principle of increasing stockbase to encourage retail buying and improve liquidity. The company, known for its adhesives and construction chemicals, uses such shareholder-friendly steps to retain investor confidence.

Read More: Pidilite Industries Bonus Record Date on Sep 23: Declared 1:1 Bonus Issue!

Stock Performance Overview

Over the past year, Pidilite shares have decreased by 9.14%, hinting at some long-term challenges. However, the stock has gained 5.91% in the last 6 months and 1.41% in the past 3 months, suggesting improved sentiment lately. Post-adjustment, the stock traded around ₹1,496.25 at 10:30 AM on the BSE on September 23, 2025, indicating minor volatility on the ex-bonus date.

Conclusion

Pidilite’s apparent 51% price crash is a routine share price adjustment due to a 1:1 bonus issue and not a sign of failing fundamentals. These bonus shares increase participation and improve liquidity without affecting enterprise value.

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