HDFC AMC announces its first-ever bonus issue: What it means for shareholders

HDFC AMC bonus issue

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26 Aug, 2025 12:21

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HDFC Asset Management Company on October 15 announced a bonus issue of shares in the ratio of 1:1 for its shareholders. This marks the first bonus issue announced by the asset management company.

Eligible shareholders would receive one bonus share for every share of the company they own, as on record date.

Record date for bonus issue:

HDFC AMC has set November 26 as the record date to determine the eligibility of the shareholders set to receive the bonus issue. This means that bonus shares will be handed over to those shareholders who own shares of the company as on November 26.

What is a bonus issue?

While the issue of bonus shares increases the total number of shares issued and owned, it does not change the market capitalization of the company. This increases the overall liquidity of the stock, and makes it more affordable for other investors to add to their portfolio, creating strong upside potential for the stock.

Bonus issue essentially are free shares offered by a company from its reserves. Such issue is perceived to reflect on a firm's strong financials and growth potential.

HDFC AMC Q2 Results:

Along with the bonus issue, HDFC AMC also released its results for the second quarter of the financial year 2026. The company reported a net profit of Rs 718.43 crore for the second quarter of the financial year 2026. This marks a rise of nearly 25 percent year-on-year (YoY) from the Rs 576.61 crore net profit reported in the same period last year.

The firm’s revenue from operations meanwhile rose around 16 percent YoY to Rs 1,027.40 crore during the quarter under review. It had earlier reported revenue from operations at Rs 887.21 crore in the corresponding quarter of the previous financial year.

HDFC AMC Q2 share price:

After the release of the results, the shares of HDFC AMC jumped more than 3 percent to trade at Rs 5,778 apiece, as seen at 3.10 pm. The stock has jumped around 6 percent in the past five days, and nearly 40 percent in the past six months.

Its P/E ratio currently stands at around 45.97.

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Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.