Did Anand Rathi Wealth shares really crash 50% in one day? Here’s how the 1:1 bonus math works

Shares of Anand Rathi Wealth turned ex-bonus on Wednesday and adjusted for the company’s 1:1 bonus issue, making the stock appear to have plunged nearly 50% in a single session. The financial services company’s shares opened at Rs 1,779.80 on the NSE, sharply lower than Tuesday’s closing price of Rs 3,539.30. However, the decline was solely due to the bonus share adjustment and did not reflect any loss in shareholder value.

In fact, the stock was trading higher on an adjusted basis, gaining nearly 1% to Rs 1,782.40 at around 9:36 am.

All about Anand Rathi Wealth’s 1:1 bonus issue

Anand Rathi Wealth in April announced that its board has approved a bonus issue of shares in the ratio of 1:1 by capitalising its reserves, along with a final dividend of Rs 7 per equity share for the financial year 2026. As part of the bonus issue, the company planned to issue one new fully paid-up equity share with a face value of Rs 5 for every existing fully paid-up equity share held by the eligible shareholders as on the record date, fixed on June 3.

“The bonus equity shares will be issued out of retained earnings and/or the securities premium account and/or the capital redemption reserve account of the company available as at 31st March, 2026 (free reserves). The bonus shares once allotted shall rank paripassu in all respects with the fully paid-up equity shares of the company and carry the same rights as the existing fully paid-up equity shares of the Company and not as an income or distribution in lieu of dividend,” the company said.

The company further stated that Rs 41.51 crore from its free reserves would be utilised for the issuance of bonus shares. At the end of the March quarter of FY26, the company had free reserves worth more than Rs 950.22 crore. The bonus shares will be added to the demat accounts of the eligible shareholders on or before June 7.

Bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio.

Anand Rathi Wealth share price

Anand Rathi Wealth shares more than doubled in less than a year to hit a fresh 52-week high of Rs 3,735 apiece in April this year, up from the 52-week low of Rs 1,860 apiece, which the stock had hit in June last year. The stock has, however, fallen around 1.5% in one month, but has gained 15% so far in 2026.

Anand Rathi Wealth earnings snapshot

Anand Rathi Wealth in April reported a consolidated net profit of Rs 103.1 crore for Q4 FY26, marking a 40.5% year-on-year (YoY) increase from the Rs 73.37 crore reported in the corresponding quarter of the previous financial year. Revenue from operations meanwhile grew around 30% YoY to Rs 287.82 crore during the quarter under review, as against Rs 221.96 crore in the same period last year. Its total assets under management (AUM) jumped 21% YoY to Rs 93,037 crore, with return on equity (RoE) at 46.7%.

Also read: Anand Rathi Wealth CEO bets on 29% profit growth in FY27(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)