Pidilite Share Price Falls After 1:1 Bonus Issue – What’s the Whole Matter?
Stock market investors have new news related to Pidilite Industries. The adhesives and chemicals manufacturer is trading at an adjusted price on Tuesday, following the record date of its bonus issue. Following this update, the Pidilite share price has fallen slightly, and this news is important for both investors and traders. Let’s understand in detail what the bonus issue means and its impact on the share price.
Pidilite Share Price and Effect of Bonus Issue
Pidilite Industries announced a 1:1 bonus issue alongside its June quarter results. This means that if an investor holds one share, they will receive an extra bonus share. On Tuesday, September 23, the stock began trading with this bonus adjustment. Early trading saw some pressure, and the Pidilite share price falls.
Today marked the company’s official record date. This simply means that shareholders who held Pidilite shares in their demat accounts until Monday’s market close will receive the bonus share benefit. Those who purchase shares after Tuesday or the record date will not.
How will a bonus issue change shareholding?
Understand a simple example of a bonus issue. If you held 100 shares of Pidilite as of Monday’s closing, you will receive 100 more bonus shares. This means you will now have a total of 200 shares. However, note that the value will remain the same as the Pidilite share price is adjusted proportionately.
The special thing about this announcement is that Pidilite has declared a bonus after 15 years. In the past, the company had also declared a 1:1 bonus issue in the year 2010. This is a good sign for investors that the company is concentrating on shareholder value creation.
Recent Performance of Pidilite Share Price
After the bonus adjustment, Pidilite’s share price fell 0.5% on Tuesday to trade at ₹1,511. The stock has declined approximately 2.5% in the past month. 2025 hasn’t seen much movement so far, with the stock gaining only 6%. This data clearly shows that the stock remains volatile in the short term.
However, corporate actions like bonus issues are a positive factor for long-term investors as they are directly linked to the company’s confidence and growth outlook.
Analysts’ View on Pidilite Share Price Target
Market experts believe that the Pidilite share price is still trading in a strong technical zone. Riyank Arora, a technical analyst at Mehta Equities Ltd., says that the stock is holding above the ₹3,000 support level, which is a positive sign. If the stock breaks the ₹3,080 level, momentum could increase to ₹3,150-3,180.
Analysts say that if the stock ever comes close to ₹3,000, it could be a good accumulation zone. This indicates the structure of the stock seems bullish in the medium-term with long-term upside potential.
What’s the lesson for investors?
A bonus issue is an important corporate action in the stock market. It doesn’t directly impact a company’s fundamentals, but it certainly boosts liquidity and investor confidence. This is the case with Pidilite. The Pidilite share price has fallen in the short-term, but its long-term sentiment could remain positive.
Investors would realize that a decline in the share price does not amount to loss, as their overall holding is diluted due to the bonus shares. If the fundamentals of the company are good, like Pidilite, being patient is an intelligent option.
Conclusion on Pidilite Share Price
Pidilite Industries‘ 1:1 bonus issue is a historic move, announced after 15 years. The stock has declined slightly since the record date, but its impact is only short-term. For long-term investors, the Pidilite share price trend still appears constructive. Experts say the stock has sturdy support at the ₹3,000 level, and the upside targets also look clear.
Thus, Pidilite is a good stock for investors seeking long-term growth and stability.
Disclaimer:
The views and recommendations above are those of individual analysts or brokerage companies, not US News Weeks. We advise investors to check with certified experts before making any investment decisions.
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