Bosch announced a 1:5 stock split and a 1:3 bonus issue on Friday. The board approved splitting existing shares with a face value of Rs 10 into five shares of Rs 2 each. While the number of shares held will increase, the total value of the investment remains unchanged for investors.
Bosch on Friday announced its first-ever 1:5 stock split and a 1:3 bonus issue for shareholders, alongside its July-September quarter results for FY27.
The company's board of directors approved the plan to split each of its existing shares with a face value of Rs 10 each into five shares with a face value of Rs 2 each.
The board also approved the proposal to issue three bonus shares for every share held in the company as of the record date, which will be announced later, Bosch said in an exchange filing.
What stock split and bonus issue together mean for investors?
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If an investor holds 10 shares of the company worth Rs 100 each, she will see her holding get split into 50 shares worth Rs 20 each following the 1:5 stock split. However, the total worth of her holding in Bosch remained unchanged at Rs 1,000.
As the 3:1 bonus issue takes effect, she will receive 150 bonus shares for the 50 shares she held in the company as on the record date, while the price adjusts to Rs 5 apiece. The total value of her now 200 shares still remains unchanged at Rs 1,000 as the share price adjusts to the two corporate actions.
So the investor who had 10 shares of the company before the record date, worth Rs 100 each, will hold 200 shares worth Rs 5 each without making any trade after the two corporate actions take effect, although her total holding value remains unchanged at Rs 1,000.
Bosch Q2 results
Bosch reported a consolidated net profit of Rs 839 crore for the second quarter of the ongoing financial year 2027, marking around a 19% year-on-year jump from the Rs 708 crore reported in the corresponding quarter of the previous financial year. The company’s revenue from operations increased over 28% YoY to Rs 7,655 crore during the quarter under review.
Bosch shares dropped more than 3% to trade at Rs 50,810 apiece on NSE on Friday. This comes a day after the stock rallied to a 52-week high of Rs 52,475 apiece. The shares of the company have gained more than 7% in a week and 13% in a month, with the stock overall being up more than 40% in 2026 so far. In the longer term, the shares of the company have delivered multibagger returns of more than 159% in three years and 185% in five years.
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