BSE stock has delivered a massive 5,200% return in the last five years, making it one of the top multibagger stocks in India.
Several trading apps are showing a 67% fall in BSE’s share price today. But is it a real market crash or something else?
67% Crash Today?
BSE turned ex-bonus today, meaning its share price was adjusted after the company issued bonus shares in a 2:1 ratio.
Bonus Share Adjustment
What is a Bonus Issue?
In a 2:1 bonus issue, shareholders receive 2 additional shares for every 1 share they hold. The stock price is adjusted accordingly to reflect this change.
Price Adjustment Explained
BSE's price dropped from Rs 7,015 to Rs 2,358 post-bonus. Apps that didn’t adjust for this change are falsely showing a 67% crash.
Stock Gained Post Adjustment
After adjusting for the bonus, BSE shares actually gained over 2% intraday, closing at Rs 2,389.
Still a Strong Performer
Even after the adjustment, BSE is up 240% from its 52-week low, 165% in the past year, and 12% in the last one month.
Strong Financial Performance
BSE reported a 362% year-on-year rise in net profit, revenue growth of 75%, and an EBITDA margin of 70% in the latest quarter.
Key Investor Update
Investor Mukul Mahavir Agrawal holds a 1.18% stake in BSE. Post-bonus, his shareholding triples in count but the percentage stake remains unchanged.
Final Takeaway
This is not a stock crash. It’s a technical price correction due to the bonus issue. Always check for corporate actions before reacting to price movements.