1:1 Bonus Issue Alert: From Rs 5,340 To Rs 2,676, Why HDFC AMC Share Price Crash By 50%? Panic Or NOT?

HDFC Asset Management Company (AMC) share price crashed by nearly 50% due to its adjustments to 1:1 bonus share. On November 26, HDFC AMC turned ex-date for its first ever bonus issuance. Following this, HDFC AMC which traded earlier around Rs 5,340 levels, is now below Rs 2,700 level. That being said, is this HDFC Bank-backed mutual fund company a hot pick to add to your portfolio after bonus issue?

HDFC AMC Bonus Issue:

The AMC fixed November 26 as the record date to determine eligible shareholders for its first bonus issue. This was also the ex-date for its share price to adjust to the bonus ratio.

The bonus ratio is of 1:1, which means, HDFC AMC will allot 1 (One) new fully paid-up Equity Share of Rs. 5/- (Rupees Five Only) each for every 1 (one) fully paid-up Equity Share of Rs. 5/- (Rupees Five Only) each.

The allotment of bonus shares will be announced anytime soon. Due to the bonus ex-date, HDFC AMC shares saw a significant drop on BSE and NSE.

HDFC AMC Share Price:

After market hours of November 26, HDFC AMC shares stood at Rs 2,676 apiece on NSE, with market cap of Rs 1,14,575.08 crore. This is down by at least 49.88% from pre-bonus share price of Rs 5339.5 apiece on November 25.

Should Investors Worry?

There is no need to worry about the latest drop. Among many reasons to bonus issue is increase in the number of shareholding, enhanced liquidity, and sentimental boost. For companies, a bonus announcement often reflects the company's strong financial performance and surplus reserves.

Effects Of Bonus Issues:

Some of the main impact when a company carries bonus issues are:

- Increases the number of outstanding equity shares

- Reduces share price in proportion to the number of bonus shares issued.

- Reduces free reserves and surplus of the company.

- Creates implicit value per equity share.

- Increases liquidity in the equity shares on the stock exchanges.

- Reduces per share ratios such as earnings per share, or book value per share, among others.

Hence, your investment value in a stock remains same even when the shares drop due to bonus.

HDFC AMC Share Price Recommendations:

The consensus recommendation from 25 analysts for HDFC Asset Management Company Ltd. is BUY, as per Trendlyne data. Of the total, 9 analysts have recommended STRONG BUY and 8 analysts have suggested BUY. The average 12-months target is Rs 2984.94 apiece, which signals at more than 11.4% potential upside ahead.

About HDFC AMC:

Incorporated in 1999, HDFC Asset Management Company Limited (HDFC AMC) is Investment Manager to HDFC Mutual Fund, one of the largest mutual funds in the country with closing AUM of Rs 8.73 trillion as on September 30,2025. The Company offers a comprehensive suite of savings and investment products ranging from mutual funds, including both actively managed and passive options, to portfolio management services and alternative investment opportunities catering to the needs of a large and diverse customer base.

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