Pidilite, Time Technoplast: Why these 2 stocks fell 50% each today
Pidilite Industries shares opened at Rs 1,539.90 apiece against Monday's closing price of Rs 3,037.75. Time Technoplast shares opened at Rs 244.25 apiece against previous day's closing price of Rs 477.75.
- Sep 23, 2025,
- Updated Sep 23, 2025 9:35 AM IST
Pidilite Industries Ltd and Time Technoplast Ltd were showing 50 per cent drop each in some trading apps, as the two scrips got ex-bonus in the ratio of 1:1 on Tuesday. This means that for every Pidilite Industries or Time Technoplast share that their respective investors hold, they will receive one additional share free of cost. Tuesday's was the first bonus issue for Pidilite Industries since March 2010 and the fourth in its history. All three earlier bonus issues by the company were also in the ratio of 1:1. Similarly, for Time Technoplast, this was the second bonus issue after August 2006.
On some trading apps, the corporate action may appear as a sudden 50 per cent plunge, but investors have little reason to panic. The fall would only be optical, as their share holdings simply double with the issue of fresh shares. There is no dilution of equity. Face value also remains the same.
Pidilite Industries shares opened at Rs 1,539.90 apiece against Monday's closing price (unadjusted) of Rs 3,037.75. Time Technoplast shares opened at Rs 244.25 apiece against previous day's closing price of Rs 477.75 (unadjusted).
The key attraction of bonus shares is that they come at no cost to shareholders. Pidilite Industries will utilise its free reserves and surplus to issue these additional shares, which will carry the same face value as the existing stock.
The impact of a bonus issue is straightforward: it increases the number of outstanding shares, reduces the company’s free reserves, and lowers earnings per share (EPS). Consequently, the stock price adjusts downward to factor in the new shareholding base.
While bonus issues and stock splits may look similar, their objectives differ. A bonus issue distributes accumulated earnings by rewarding shareholders with free additional shares while keeping the face value intact. A stock split, however, divides existing shares into smaller units to enhance liquidity, which reduces the face value. For example, in a 1:5 stock split, one share is split into five smaller shares, with dividend entitlement shrinking proportionately. In the case of a bonus issue, dividend entitlement remains unchanged.
Pidilite Industries Ltd and Time Technoplast Ltd were showing 50 per cent drop each in some trading apps, as the two scrips got ex-bonus in the ratio of 1:1 on Tuesday. This means that for every Pidilite Industries or Time Technoplast share that their respective investors hold, they will receive one additional share free of cost. Tuesday's was the first bonus issue for Pidilite Industries since March 2010 and the fourth in its history. All three earlier bonus issues by the company were also in the ratio of 1:1. Similarly, for Time Technoplast, this was the second bonus issue after August 2006.
On some trading apps, the corporate action may appear as a sudden 50 per cent plunge, but investors have little reason to panic. The fall would only be optical, as their share holdings simply double with the issue of fresh shares. There is no dilution of equity. Face value also remains the same.
Pidilite Industries shares opened at Rs 1,539.90 apiece against Monday's closing price (unadjusted) of Rs 3,037.75. Time Technoplast shares opened at Rs 244.25 apiece against previous day's closing price of Rs 477.75 (unadjusted).
The key attraction of bonus shares is that they come at no cost to shareholders. Pidilite Industries will utilise its free reserves and surplus to issue these additional shares, which will carry the same face value as the existing stock.
The impact of a bonus issue is straightforward: it increases the number of outstanding shares, reduces the company’s free reserves, and lowers earnings per share (EPS). Consequently, the stock price adjusts downward to factor in the new shareholding base.
While bonus issues and stock splits may look similar, their objectives differ. A bonus issue distributes accumulated earnings by rewarding shareholders with free additional shares while keeping the face value intact. A stock split, however, divides existing shares into smaller units to enhance liquidity, which reduces the face value. For example, in a 1:5 stock split, one share is split into five smaller shares, with dividend entitlement shrinking proportionately. In the case of a bonus issue, dividend entitlement remains unchanged.