Patanjali Foods Shares Adjust for 2:1 Bonus Issue: Why the 67% Plunge Is Misleading

On September 11, 2025, li Foods' share price appeared to plummet by nearly 67% in a single trading session, dropping to around Rs 596 per share. However, this dramatic decline is not a cause for alarm but rather a reflection of a 2:1 bonus share issue, with the record date for determining eligible shareholders set for the same day. Here's a closer look at what happened and why investors should look beyond the apparent crash. Understanding the Bonus Issue In July 2025, Patanjali Foods' board approved a 2:1 bonus issue, meaning shareholders received two additional equity shares for every one share held. This corporate action, finalized on September 11, rewards existing shareholders by increasing the number of shares they own without altering the company's overall market capitalization, which currently stands at approximately Rs 64,856 crore. A bonus issue enhances the liquidity of a stock by increasing the total number of shares in circulation. This makes the stock more affordable for new investors, potentially broadening the shareholder base and creating opportunities for future price appreciation. While the share price adjusts downward to reflect the increased share count, the intrinsic value of an investor's holding remains unchanged.