BSE Ltd Stock Appears to Fall 67% — Here’s the Real Reason Behind the “Crash”

Shares of BSE Ltd, the oldest stock exchange in India and a multibagger over the last five years, are making headlines today—but for a confusing reason. On Friday, some trading platforms displayed a massive drop of up to 67% in BSE's share price, sparking panic among retail investors. However, the sharp “fall” isn’t an actual decline in value but rather an adjustment due to the bonus share issuance.

Why Is BSE Showing a 67% Fall on Some Platforms?

The sharp drop being reflected in certain apps is the result of BSE shares turning ex-bonus on Friday, May 23, 2025. The company had earlier declared a 2:1 bonus share issue, meaning two additional shares would be issued for every one share held as of the record date.

This corporate action reduces the stock price proportionately, and some trading apps have not yet adjusted their previous day’s close, leading to an erroneous appearance of a price crash.

Pre-bonus close: ₹7,015 (Thursday)
Post-bonus open: ₹2,358 (Friday)
Adjusted intra-day price: ₹2,389 (up 2% post-adjustment)

As of Friday, BSE's market capitalization stood close to ₹96,000 crore.

Bonus Shares Details

Bonus Ratio: 2:1 (2 bonus shares for every 1 share held)
Record Date: Friday, May 23, 2025
Deemed Date of Allotment: Monday, May 26, 2025
Listing of Bonus Shares: Tuesday, May 27, 2025
Total Bonus Shares Issued: 27,46,52,718 shares (face value ₹2 each)

How Has BSE Performed Over Time?

Despite today's technical dip, BSE remains one of India’s top-performing stocks:

5-Year Return: Over 5,200%
1-Year Return: 165%
6-Month Return: ~50%
1-Month Return: 12%
52-Week High (adjusted): ₹2,529.33 (May 20, 2025)
52-Week Low (adjusted): ₹705 (July 2024)

Strong Financial Performance Fuels Confidence

In its latest quarterly results, BSE reported:

Net Profit: ₹494 crore (YoY growth of 362%)
Revenue from Operations: ₹847 crore (up 75% YoY)
Operating EBITDA: ₹594 crore
EBITDA Margin: 70%

Big Investors Still Backing BSE

Notably, seasoned investor Mukul Mahavir Agrawal held 16 lakh equity shares or 1.18% stake in BSE as of March 31, 2025. Post bonus, if unchanged, his shareholding will expand to 48 lakh shares, though his percentage stake remains unchanged due to proportionate dilution.

Investor Advisory

The sudden drop in BSE’s stock price seen on trading platforms is not a cause for concern. It is purely due to the adjustment following the bonus share issuance. Investors should check the adjusted prices before making any trading decisions.

Disclaimer: This blog is for informational purposes only. It should not be construed as financial advice. Always consult with a certified financial advisor before making investment decisions.

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BSE Ltd Stock Appears to Fall 67% — Here’s the Real Reason Behind the “Crash”