HDFC Bank shares dip 2% over 1.56 mn shares block deal

Shares of HDFC Bank slipped 1.8% to their intraday low of Rs 955 on the BSE on Thursday after a large block deal saw 1.56 million shares change hands. The transaction came just a day after the bank’s stock price adjusted to reflect its recent 1:1 bonus share issuance, which had already taken effect on Tuesday.

Block deals are typically high-value transactions involving a minimum quantity of shares executed between institutional investors or large stakeholders, often carried out through a separate trading window to reduce volatility in the open market.

While details of the buyer and seller were not immediately available, such transactions can influence near-term stock movement given the large volumes involved.

The decline in the stock follows a significant technical adjustment earlier this week, when HDFC Bank began trading ex-bonus after issuing one additional share for every share held. The move doubled the number of outstanding shares and reduced the stock price in proportion, without altering the bank’s overall market capitalisation or shareholder value.

On Tuesday, the stock opened about 62% lower than the pre-bonus closing price, in line with the bonus ratio, and traded in the range of Rs 982.20–Rs 986.30. The adjustment reflected the mechanical dilution from the bonus issue rather than any change in the bank’s fundamentals.

Bonus share issuances are often viewed as a signal of confidence in a company’s long-term earnings potential. For HDFC Bank, the exercise was part of its broader strategy to improve liquidity in the counter and widen retail participation.

Thursday’s block deal, coming immediately after the bonus adjustment, added to trading activity in the counter, pushing shares lower in early deals

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