Why does the market price reduce after a Bonus Issue?

The market price is adjusted to account for the additional shares issued under the bonus issue. A lower displayed price after the adjustment does not necessarily represent a corresponding loss in investment value.

Example:

Before a 1:1 Bonus Issue: ₹600 per share

After the bonus adjustment: approximately ₹300 per share

100 shares become 200 shares, while the overall value remains broadly equivalent immediately after the adjustment, subject to market movement.

Important to remember:

The revised market price should always be viewed along with the revised share quantity.

Understand MTF Bonus Shares →

Learn how bonus shares are credited, pledged, and released for MTF-funded holdings.

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