Shares of Bengaluru-based real estate developer Brigade Enterprises adjusted to a 1:3 bonus issue, appearing to have crashed 22% in one day when in reality the stock rallied 10% on Wednesday.
After closing at Rs 720.25 apiece on the NSE on Tuesday, the company's shares adjusted to the bonus issue on Wednesday and opened at Rs 559.70 apiece. The decline was solely due to the bonus share adjustment and did not reflect any loss in shareholder value. The stock then jumped around 10% from its adjusted price to reach the day’s high at Rs 595.95 per share.
