Did Anand Rathi Wealth shares really crash 50% in one day? Here's how the 1:1 bonus math works

Synopsis

Anand Rathi Wealth shares appeared to tumble nearly 50% after turning ex-bonus for its 1:1 bonus issue. The decline was purely due to a price adjustment and not a loss in value. The company will issue one bonus share for every existing share, while capitalising Rs 41.51 crore from reserves.

Shares of Anand Rathi Wealth turned ex-bonus on Wednesday and adjusted for the company's 1:1 bonus issue, making the stock appear to have plunged nearly 50% in a single session. The financial services company's shares opened at Rs 1,779.80 on the NSE, sharply lower than Tuesday's closing price of Rs 3,539.30. However, the decline was solely due to the bonus share adjustment and did not reflect any loss in shareholder value.

In fact, the stock was trading higher on an adjusted basis, gaining nearly 1% to Rs 1,782.40 at around 9:36 am.

All about Anand Rathi Wealth’s 1:1 bonus issue

“The bonus equity shares will be issued out of retained earnings and/or the securities premium account and/or the capital redemption reserve account of the company available as at 31st March, 2026 (free reserves). The bonus shares once allotted shall rank paripassu in all respects with the fully paid-up equity shares of the company and carry the same rights as the existing fully paid-up equity shares of the Company and not as an income or distribution in lieu of dividend,” the company said.

The company further stated that Rs 41.51 crore from its free reserves would be utilised for the issuance of bonus shares. At the end of the March quarter of FY26, the company had free reserves worth more than Rs 950.22 crore. The bonus shares will be added to the demat accounts of the eligible shareholders on or before June 7.

Bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio.

Anand Rathi Wealth share price

Also read: Anand Rathi Wealth CEO bets on 29% profit growth in FY27

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