Patanjali Foods Bonus Issue Explained: Share Price Adjusts After 2:1 Split

Investors saw shares slide from ₹1,802 to ₹601 after going ex-bonus. But the decline is only notional and reflects a technical price adjustment.

Shares of Patanjali Foods turned ex-bonus on Thursday. The FMCG company’s board had approved a 2:1 bonus issue on August 22, which means shareholders will receive two additional shares for every one share held as of the record date.

Why The Price Looked Like It Crashed

On Wednesday, the stock closed at ₹1,802.25 (pre-adjustment) but opened at ₹601.15 on Thursday after adjustment. While some trading apps initially showed a steep fall of up to 67% in the stock price, the decline was due to the bonus adjustment.

On a pre-adjusted basis, the stock is down 0.8%.

2:1 Bonus Issue

In August, the company proposed to issue over 72.5 crore bonus shares of face value ₹2 each. This will result in its post-issue share capital reaching nearly 108.75 crore shares.

Shareholders who owned the stock before the record date are eligible for the bonus allotment, while investors buying on or after the record date will not qualify.

Bonus Shares: How Does It Work?

Bonus shares are issued at no cost to investors, drawn from a company’s reserves. While they increase the number of shares in circulation and lower earnings per share, they do not dilute equity.

For example, if an investor initially held 10 shares priced at ₹30 each, the total investment would amount to ₹300. After the 2:1 bonus issue, the investor’s holding increases to 30 shares, while the stock price adjusts to around ₹10 per share.

Post the corporate action, Patanjali Foods’ market capitalization held steady at around ₹65,000 crore.

Shareholding Pattern

Promoters, including Baba Ramdev-led Patanjali Ayurved, hold 36.70% in the company, while public shareholders own 31.17%. LIC has a 9.14% stake, and mutual funds own 1.72% as of June 2025.

Patanjali Foods joins the list of prominent companies such as HDFC Bank, Nestle India, and Bajaj Finance that have announced bonus issues this year.

Stock Watch

At the time of writing, Patanjali shares were trading at ₹595.60 each. Retail sentiment on Stocktwits shifted from ‘neutral’ to ‘bearish’ in a single session.

The stock has gained 1.6% so far this year.

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