From mint · Equitymaster · · 1m 10s
Tech Mahindra Bonus Issue: Sweet Deal or Market Trap
Tech Mahindra's 1:1 bonus share issue may boost holdings but risks price correction for investors.
In brief
Tech Mahindra's 1:1 bonus share issue may boost holdings but risks price correction for investors. Tech Mahindra's 1:1 bonus issue could increase shareholder holdings but may trigger stock price correction. Originally reported by mint.
Tech Mahindra Bonus Issue Announcement
The Tech Mahindra board announced a bonus issue of shares on 15 October 2026.
1:1 Bonus Share Ratio
The company will give 1 additional share for every 1 share held by shareholders.
Record Date to Be Determined
The record date for the bonus issue will be set by the company later.
Last Bonus Issue in 2015
Tech Mahindra's last bonus issue was announced in January 2015.
Share Face Value
The face value of shares is ₹5.
Price Correction After Ex-Bonus
Stock prices drop by half after ex-bonus date due to doubled share count.
Q2FY27 Financial Results
Tech Mahindra reported ₹16,180 crore revenue up 15.6% year-on-year in Q2FY27.
Profit After Tax
Profit after tax rose to ₹1,586 crore, up 32.7% year-on-year.
Stock Price Jump
The stock rose 8% after the bonus announcement on 16 October 2026.
The bottom line
Tech Mahindra's 1:1 bonus issue could increase shareholder holdings but may trigger stock price correction.
