Thyrocare Technologies Share Price Appears Down 66% at ₹491.70 as Stock Trades Ex-Bonus After 2:1 Issue

Mumbai, November 28: Thyrocare Technologies share price was trading lower by 66% at ₹491.70 in early trade today, against its last closing price of ₹1,472 on November 27. However, investors need not worry as the share price fall is an adjustment to the company’s 2:1 bonus issue, and not a real monetary loss. In reality, Thyrocare Technologies share price is only down by 1.10%, or 5.40 points, and is trading at ₹486.30, as of 10:55 AM.

Thyrocare Technologies Ltd (NSE: THYROCARE, BSE: 539871) is a leading Indian multinational chain of diagnostic and preventive care laboratories. It operates one of the largest and most automated Central Processing Laboratories (CPLs) in India, complemented by a wide network of Regional Processing Laboratories (RPLs) and collection centres across the country and in select international markets. The company was established in 1996 and is headquartered in Mumbai, Maharashtra.

Why the Share Price Fall?

Thyrocare Technologies has announced a bonus issue of 2:1. This means that shareholders holding 1 share of the company as on the record date will be eligible to receive 2 additional shares, taking the total number of shares to 3. The ex-bonus date and the record date is today. Investors who held or bought the shares of the company by the end of yesterday’s trading session will be eligible to receive the bonus shares today.

Since investors will receive 2 extra shares, the share price has fallen in proportion to the bonus issue. This has happened to ensure that with extra shares, the total investment value for shareholders remains the same. Hence, even with a 66% fall in the share price, the investment value remains the same (excluding today’s real share price fall of 1.10%, as of now).

Investor Takeaway for Thyrocare Technologies

The 66% fall in the share price of Thyrocare Technologies is a common adjustment that has happened due to its bonus issue. The investment value for the shareholders, and the company’s market cap remains the same. The Bonus issue is will increase liquidity for the shares, and will attract more investors due to the reduced share price. The shares of the company have provided 190.46% returns in 1 week, and 243.39% returns in 1 month. Investors will hope that the shares continue to provide good returns in the future.

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