Tue Aug 26 03:40:00 UTC 2025: Okay, here’s a summary of the text and a news article based on it:
**Summary:**
HDFC Bank’s stock price appeared to plummet by 62% on Tuesday, but this was a technical adjustment due to the bank’s 1:1 bonus share issue. The bonus shares are intended to increase liquidity and make the stock more accessible to retail investors, without affecting the bank’s overall market capitalization or the value of individual shareholder holdings.
**News Article:**
**HDFC Bank Shares Plunge… But Don’t Panic: It’s Just a Bonus Share Adjustment**
**Mumbai –** HDFC Bank shares saw what appeared to be a dramatic 62% drop in trading on Tuesday. However, market analysts are assuring investors that this steep decline is merely a technical adjustment following the bank’s 1:1 bonus share issue.
A bonus share issue increases the number of shares in circulation, which can give the impression of a fall in the stock price. The bonus issue provides more liquidity, making individual stocks more attainable. These operations, however, don’t effect shareholder worth or the market capitalization of the bank.
“The apparent crash is simply a reflection of the ex-bonus effect,” explained one market observer. “The underlying value of HDFC Bank remains unchanged. Investors shouldn’t be alarmed.”
Bonus shares are often issued to increase retail participation in a company’s stock, and HDFC Bank’s move is expected to broaden its investor base.
First Piper 