Multibagger Jhunjhunwala stock is showing 50% fall today; here's why

Concord Biotech shares ex-bonus: Jhunjhunwala-backed Concord Biotech Ltd might be showing up to 50 per cent fall in some trading apps today as all these the shares turned ex-bonus, adjusting to the pre-announced corporate action. It had announced bonus issue for the eligible shareholders, indicating a sharp downside in their stock price.

"The board of directors of the company, at its meeting held on October 27, 2026 has fixed Wednesday, November 04 as the record date for the purpose of determining the eligibility of shareholders entitled to receive bonus equity shares in the ratio of 1:1, that is, one equity share as bonus share for every one existing fully paid up shares held, subject to regulatory approval," said Concord in an exchange filing.

This means that all the eligible shareholders of Concord Biotech, shall get an additional share of the company for each share held by them as on the record date. All the eligible shareholders' stockholding shall be doubled but the stock price shall be adjusted in the proportionate basis, leaving the total invested value unchanged.

Shares of Concord Biotech Ltd settled at Rs 1,229.90 on Tuesday and opened at Rs 610 on Wednesday, post the adjustment of issuance of bonus shares. It is possible that trading apps of certain brokerages might be showing the unadjusted share price for yesterday and, thus, suggesting a 50-52 per cent-odd fall on the counter.

Post adjustment of stock split, shares of Concord Biotech dropped to Rs 595 in the early session but rebounded sharply by 4.8 per cent to Rs 623.65 on Wednesday, with its total market capitalization close to Rs 13,000 crore mark. The stock has dropped 24 per cent from its adjusted 52-week high at Rs 807.03, hit in August, 2026. However, it is up 26 per cent from its adjusted 52-week low at Rs 493.53 hit in April, 2026.

A bonus issue refers to the distribution of additional shares to existing shareholders free of cost, funded through a company’s free reserves or securities premium account. The total value of an investor’s holdings remains unchanged after the issue, as the increase in the number of shares is offset by a proportionate adjustment in the share price. The receipt of bonus shares is not a taxable.

Incorporated in 1984, Concord Biotech Limited is an India-based R&D-driven biopharma company, ranked among leading API players from India. Shares of Concord Biotech were listed in August 2023, when the company raised Rs 1,550.52 crore at Rs 741 apeice. The stock is currently 70 per cent from its adjusted IPO price.

Three discretionary trusts named after children of late legendary investor Rakesh Jhunjhunwala own nearly 2.52 crore equity shares (5.04 crore shares on a post adjustment basis) or 24.10 per cent stake in the company. This stake is valued at Rs 3,143.10 crore currently.

Concord Biotech reported a 11.2 per cent jump in the net profit on a year-on-year (YoY) basis to Rs 70.65 crore, while its revenue from operations increased 25.1 per cent YoY to Rs 309.07 crore for the September 2026 quarter. Its EBITDA increased 17.9 per cent YoY to Rs 104.81 crore but margins narrowed 207 basis points to 33.91 per cent for the quarter.