HDFC AMC Share: Such a decline was seen in the shares of HDFC Asset Management Company this morning which surprised even the smallest investors. As soon as the market opened on Wednesday, November 26, HDFC AMC shares were trading on NSE at the level of Rs 2,682, i.e. about 50% cheaper. But this decline was not the result of any bad news, rather it was a technical adjustment of the company’s 1:1 bonus issue.
On Tuesday, HDFC AMC shares closed at Rs 5,336.50. This was the first time since the company started its stock market journey that it announced a bonus issue. For this, the record date was fixed on 26th November, that is, only those who held shares till the market closed on Tuesday will get the bonus.
Investors who are buying new shares on Wednesday i.e. today will not be entitled to this bonus.
If you understand in simple language, you will get the same number of shares for free as you had.
1 share = 1 bonus share
100 shares = 100 bonus shares
200 shares = now 400 shares
But since the number of shares is doubling, the company halves the share price, so that your total value remains the same.
This is the reason why today the price was seen adjusted by 50%.
You had 100 shares × Tuesday’s price was 5,336.5
→ Total value around Rs 5.33 lakh
Now there are 200 shares × new price around Rs 2,682
→ Total value still almost the same
Zero direct impact on investor’s pocket.
According to shareholding data for September quarter, HDFC AMC has about 4.1 lakh retail investors. Total stake 6.57%. Mostly small investors, whose holding is up to Rs 2 lakh. All of them will get bonus according to their current stake.
This morning may have started with falling prices, but this fall was only technical. In actual trading, the stock showed a slight rise and reached Rs 2,688.5, a gain of about 0.75%.
The point to note is that:
That means long-term investors are still enjoying excellent returns.
In the eyes of market analysts, bonus issues always provide a psychological boost to small investors. The feeling of getting more shares and trading at a lower price, both together can support the stock for a few days. However, the real direction will be determined by the company’s fundamentals and market conditions.
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