1:1 Bonus On August 26: HDFC Bank Stock Crossed Rs 2,000, Investors Get RICH With 58,316% Gains; BUY BlueChip?

HDFC Bank share price crossed Rs 2,000 once again, as the record date of its 1:1 bonus issue nears. This mega bank is going to turn a profit for the first time in its history. That being said, should you buy HDFC Bank, which has given an all-time gain of a whopping 58,315.45%, making investors rich!

HDFC Bank Share Price:

After market hours on August 18, HDFC Bank share price ended at Rs 2003.65 apiece on BSE, up by 0.62% with a market cap of Rs 15,37,788.89 crore. This is closer towards its 52-week high of Rs 2,036.30 apiece.

YTD, HDFC Bank shares are up by a whopping 12.41% on BSE. But its all-time gains is even better by a mind-boggling 58,315.45%. HDFC Bank stock was once Rs 3.43 apiece on April 5, 1996.

Rs 20,000 Investment Turned Rs 1.16 crore

For instance, if an investor had bought HDFC Bank shares worth Rs 20,000 on April 5, 1996. At 58,315.45% all-time gains, their investment would have surged to a corpus of Rs 1,16,83,090 or Rs 1.16 crore.

The higher the investment and time period a stock is held, the better are gains. However, this is just an example, and investors gains or losses depend upon a number of key factors, and vary from investor to investor.

HDFC Bank Bonus Issue:

HDFC Bank announced its ever bonus issue of 1:1. So, HDFC Bank will give 1 free share with a face value of Re 1, on every existing 1 share with a face value of Re 1.

The record date and ex-bonus date for 1:1 bonus issue is fixed on August 26, 2025.

For this, the lender will allot at least 766,79,13,646 equity shares as bonus, amounting to Rs. 766,79,13,646/-. This amount will be taken out from HDFC Bank's free reserves.

The effects of 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.

Let's say you held 100 shares of HDFC Bank at Rs 2,000 each. Assuming no market reaction on the bonus record date, at a 1:1 bonus issue ratio, you will receive 100 free shares (100 existing shares x 1/1), which will take your total number of shares to 200 shares, but the share price value will be reduced to Rs 1,000 each. So theoretically, there is no surge or fall in your portfolio; your wealth remains the same.

BUY Time In HDFC Bank?

HDFC Bank is a blue-chip stock, and its long-term gains have been appreciating so far.

"We have increased our FY26E/FY27E ABVPS estimates by 4.4%/7.6%, respectively, supported by broad-based loan growth across retail, MSME, and corporate segments," said Deven Choksey in its latest report.

Analysts added, "We value HDFC Bank's standalone business at Rs 2,005.0 per share (based on 2.4x FY27E ABV), while we value its stake in the subsidiaries at Rs 269.0 per share, implying a SOTP target price of Rs 2,274. We reiterate our "ACCUMULATE" rating on the stock."

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.