Dr Lal Pathlabs bonus shares explained: Why the stock may see a sharp fall today
Dr Lal PathLabs is set to see a sharp decline in its quoted share price on Friday, December 19, as the stock turned ex-date for its maiden bonus issue.
- Dec 19, 2025,
- Updated Dec 19, 2025 8:51 AM IST
Dr Lal PathLabs is set to see a sharp decline in its quoted share price on Friday, December 19, as the stock turned ex-date for its maiden bonus issue. Today is also the record date for the corporate action as the company’s eligible shareholders will get bonus shares in 1:1 ratio.
Dr Lal Pathlabs shall execut a bonus issue, resulting in a proportional increase in the number of outstanding shares. When the market opened today, the share price underwent an automatic adjustment to reflect this corporate action, which may have appeared as a sharp decline in price on some trading platforms. However, this drop is only optical, as investors' total investment value remains unchanged due to the corresponding increase in shareholding.
With the latest corporate action, Dr Lal PathLabs is set to join the likes of HDFC Asset Management Company, Thryocare Technologies, Zydus Wellness, Bharat Rasayan, Moneyboxx Finance, TAC Infosec, Shilpa Medicare, Pidilite Industries, Nazara Technologies and other which traded ex-bonus today.
A bonus issue expands the total shares in circulation, reduces free reserves, and lowers earnings per share, leading to a recalibration of the stock price. Dr Lal Pathlabs stated, "The bonus equity shares will be issued by capitalising amounts standing to the credit of the capital redemption reserve and/or securities premium account and/or free reserves, and/or retained earnings of the company, Dr Lal Pathlabs informed exchanges earlier."
The board of Dr Lal Pathlabs recently approved an increase in its authorised share capital from Rs 107.96 crore (10,796,000 equity shares of Rs 10 each) to Rs 2,000 crore (200,000,000 equity shares of Rs 10 each). This change in the capital clause of the Memorandum of Association is subject to shareholder and regulatory approval.
Bonus issues differ from stock splits in their objectives. While both actions result in a greater number of shares available, a bonus issue is a reward to shareholders from accumulated earnings and does not change the face value of the shares. In contrast, a stock split increases liquidity by dividing shares into smaller units and reduces the face value per share.
The immediate impact for Dr Lal Pathlabs shareholders is a greater number of shares in their accounts with a corresponding adjustment in share price. There is no dilution of equity, and the market capitalisation remains unchanged post-adjustment.
Dr Lal PathLabs is set to see a sharp decline in its quoted share price on Friday, December 19, as the stock turned ex-date for its maiden bonus issue. Today is also the record date for the corporate action as the company’s eligible shareholders will get bonus shares in 1:1 ratio.
Dr Lal Pathlabs shall execut a bonus issue, resulting in a proportional increase in the number of outstanding shares. When the market opened today, the share price underwent an automatic adjustment to reflect this corporate action, which may have appeared as a sharp decline in price on some trading platforms. However, this drop is only optical, as investors' total investment value remains unchanged due to the corresponding increase in shareholding.
With the latest corporate action, Dr Lal PathLabs is set to join the likes of HDFC Asset Management Company, Thryocare Technologies, Zydus Wellness, Bharat Rasayan, Moneyboxx Finance, TAC Infosec, Shilpa Medicare, Pidilite Industries, Nazara Technologies and other which traded ex-bonus today.
A bonus issue expands the total shares in circulation, reduces free reserves, and lowers earnings per share, leading to a recalibration of the stock price. Dr Lal Pathlabs stated, "The bonus equity shares will be issued by capitalising amounts standing to the credit of the capital redemption reserve and/or securities premium account and/or free reserves, and/or retained earnings of the company, Dr Lal Pathlabs informed exchanges earlier."
The board of Dr Lal Pathlabs recently approved an increase in its authorised share capital from Rs 107.96 crore (10,796,000 equity shares of Rs 10 each) to Rs 2,000 crore (200,000,000 equity shares of Rs 10 each). This change in the capital clause of the Memorandum of Association is subject to shareholder and regulatory approval.
Bonus issues differ from stock splits in their objectives. While both actions result in a greater number of shares available, a bonus issue is a reward to shareholders from accumulated earnings and does not change the face value of the shares. In contrast, a stock split increases liquidity by dividing shares into smaller units and reduces the face value per share.
The immediate impact for Dr Lal Pathlabs shareholders is a greater number of shares in their accounts with a corresponding adjustment in share price. There is no dilution of equity, and the market capitalisation remains unchanged post-adjustment.