8 months ago
Dr Lal PathLabs Stock Falls 50% Due to Bonus Shares
Dr Lal PathLabs, a company that provides diagnostic tests and services, announced that it will give bonus shares to its shareholders.
This means that for every share a person owns, they will get an extra share for free.
However, this caused the stock price to drop by about 50% because the price is now split between more shares.
This drop is just on paper and doesn't mean the company is worth less.
The face value of each share stays the same at Rs 10.
The company is doing well and expects to grow, but some experts suggest holding onto the stock for now.
Dr Lal PathLabs stock fell over 50% due to the issue of bonus shares in a 1:1 ratio.
The face value of each share remains unchanged at Rs 10.
The stock opened at Rs 1,390 on Friday, down from Rs 2,796.7 on Thursday.
The company's market capitalization is close to Rs 23,000 crore.
Geojit Investments revised its stance to 'hold' with a target price of Rs 1,774 post bonus adjustment.
- Who
- Dr Lal PathLabs and its shareholders
- What
- Stock price adjustment due to bonus shares
- Where
- Indian stock markets
- When
- Effective from Friday
- Why
- To issue bonus shares in a 1:1 ratio to eligible shareholders
Key facts
- Company
- Dr Lal PathLabs
- Bonus Share Ratio
- 1:1
- Face Value per Share
- Rs 10
- Opening Price (Friday)
- Rs 1,390
- Previous Close (Thursday)
- Rs 2,796.7
- Market Capitalization
- Rs 23,000 crore
- Target Price (Post Bonus)
- Rs 1,774
Quotes
Geojit Investments
A financial services company providing investment research and advisory services.
“It expects to achieve double-digit revenue growth, with plans to add new labs, expected to be supported by strong cash flow generation, driving long-term growth. However, given the current valuation levels, we are revising our stance to a 'hold' rating, with a target price of Rs 3,548 (Rs 1774 post bonus adjustment).”
businesstoday.in
