The share price of mega HDFC Bank has corrected sharply, sinking by nearly 52% since the time it turned ex-bonus for the first time. HDFC has allotted 7,677,039,761 equity shares as a bonus to eligible shareholders. Despite the latest drop, HDFC Bank shares are still up 7% YTD. And, in the long run, HDFC Bank continues to give a whopping 34,443.48% all-time gain. Is it the right time to add HDFC Bank stock?
HDFC Bank Share Price:
After market hours of August 29th, HDFC Bank shares closed at Rs 953.40 apiece on NSE, down by 0.5% with a market cap of Rs 14,63,857.94 crore. The stock is down by 51.6% from August 25th, when the stock price was at Rs 1,969.20 apiece.
HDFC Bank shares turned ex-bonus on August 26, which was also the record date. On the ex-date, the stock price adjusted to a 1:1 bonus issue and ended at Rs 972.30 apiece. However, HDFC Bank continued to slide thereafter. In the pre-bonus era, the stock was at Rs 1,969.20 apiece on August 25th.
Despite this, HDFC Bank has skyrocketed to become a multi-bagger in the long run. The stock's all-time gains are a whopping 34,443.48%. Once upon a time, HDFC Bank shares were at Rs 2.76 per share on January 1, 1999.
HDFC Bank Bonus Issue Allotment:
HDFC Bank announced that on August 28th, they allotted 7,67,70,39,761 equity shares of Re. 1/- (Rupee One only) each as fully paid-up bonus equity shares, in the proportion of 1:1, i.e., 1 (One) new fully paid-up equity share of Re. 1/- (Rupee One only) each for every 1 (One) existing fully paid-up equity share of Re. 1/- (Rupee One only) each, to the eligible members of the Bank whose names appeared in the Register of Members/Register of the Beneficial Owners, as of August 27, 2025, the 'Record Date' fixed for this purpose.
The heavyweight stock turned ex-bonus on August 26, for its bonus issue ratio of 1:1. August 26 is also the record date to determine eligible shareholders for the bonus.
Benefits Of Bonus Issue:
The following are the benefits of bonus shares that you can get as a shareholder, as per HDFC Bank's blog.
Increased Shareholding: You receive additional shares at no extra cost. This increases the total number of shares. This can lead to a larger stake in the company and the potential for greater returns if the company's value is appreciated.
Enhanced Liquidity: With more shares in circulation, trading becomes more liquid, which makes it easier to buy or sell shares. This can be beneficial if you are looking to trade holdings.
No Immediate Tax Implications: Receiving bonus shares does not incur immediate tax liabilities. You only pay taxes on these shares when you sell them and realise a capital gain.
Perception of Company Health: The issuance of bonus shares often reflects a company's positive performance and confidence in its prospects. This helps boost investors' confidence and potentially enhances market perception.
Should You BUY HDFC Bank Shares?
Recently, Global brokerage Jefferies has suggested BUY with a target price of Rs 2,400 on HDFC Bank. The positive outlook is due to HDFC Bank's robust deposit mobilization, a better loan-to-deposit ratio (LDR), and merger-related synergies that look well-poised. This is pre-bonus target.
Post bonus issue, the consensus recommendation from 39 analysts for HDFC Bank Ltd. is STRONG BUY, as per Trendlyne data. Of the total, 29 analysts have recommended STRONG BUY, while 8 analysts suggested BUY, and only 2 analysts have recommended HOLD. No analyst suggested SELL. The average target price is Rs 1139.92 apiece on HDFC Bank, signalling a nearly 20% potential surge ahead.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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