HDFC Bank 1:1 Bonus Share Issue: What Investors Need to Know

HDFC Bank has issued its first-ever bonus share issue, sparking major interest among investors and market watchers. You can check the important information here such as record date, ex date, eligibility and more.

HDFC Bonus Share Announcement

HDFC Bank announced its 1:1 bonus share issue on July 19, 2025, giving shareholders 1 bonus share for each share held by them. This corporate action is seen as the bank’s commitment to reward long-term investors. For context, a bonus issue like this doesn’t cost anything to shareholders—each will simply own more units at an adjusted price.

The bonus issue comes at a time when HDFC Bank’s stock has shown resilience, trading around Rs 1970 before corporate action news made rounds. With a 1:1 ratio, the bank aims to enhance retail participation in its equity base and showcase solid financial health to the market.

HDFC Bonus Share Record Date, Ex-Date & Eligibility

Investors needed to pay close attention to the critical dates for HDFC bonus issue eligibility. The record date was set for August 27, 2025, but due to the T+1 settlement cycle in India, only shares purchased by August 25 were reflected in investor demat accounts by the record date.

The ex-date, when the share price adjusts for the bonus issue, occurred just before the record date—causing the share price to halve while doubling the shareholding for each eligible investor. This is standard for bonus issues and should not be mistaken for a market crash or devaluation. For eg: A shareholder holding 100 shares at Rs 2,600 each becomes 200 shares at approximately Rs 1,300 per share, with total investment value unchanged.

HDFC Bonus Issue Price Impact

After the ex-date, the HDFC bonus issue price became a hot topic—onlookers noticed a substantial price dip, but this was a mathematical adjustment rather than a real loss. The adjustment is necessary to reflect the increased number of shares in circulation, so while the nominal price per share drops, the total equity value for each investor remains the same.

HDFC Bank’s paid-up share capital doubled to Rs 1,535.40 crore following the allotment of more than 767 crore bonus shares. The bonus shares were credited to eligible shareholder accounts by August 29, 2025, makes them available for trading or holding on the next market session.

HDFC Bonus Share Eligibility, Allotment & Demat Credit

Eligibility for the HDFC bonus share issue revolved strictly around the record date, with shares allotted by September 18, 2025. Investors holding shares in their demat accounts as of August 27 were set to receive bonus shares within three business days after the record date.

Once allotted, the bonus shares could be traded or held. There is no “cost price” for these shares—they’re allocated at zero rate, and portfolios automatically adjust once the shares are credited. The nominal face value for each bonus share remains unchanged at Rs 1.

Conclusion

The first-ever 1:1 bonus share issued by HDFC Bank is a vital milestone, signifying the bank's robust financial position and confidence in growth. While the share price will drop to allow for an increased number of shares, investors double their shareholding without any associated costs. In addition, the bonus shares improve liquidity for the bank and broaden retail participation, meaning that all of this bodes well for shareholders long-term. Therefore, while a bonus share issue can do with more than just providing free shares to shareholders, it illustrates how in issuing bonus shares, HDFC Bank is signalling, through its actions, that HDFC Bank is committed to providing sustained value to the bank and rewarding its shareholders, hence leading the banking system in India.