Bonus issue alert: Why you should ignore the 50% plunge in eClerx Services shares

Shares of eClerx Services adjusted for a 1:1 bonus issue on Friday and appeared to have crashed 50% in a single session. In reality, the stock fell about 6%, hitting an intraday low of Rs 1,480 amid broader weakness in the market.

After closing at Rs 3,152 on the NSE on Thursday, the shares opened at Rs 1,571 today as the counter turned ex-record date for the bonus issue. The stock then lost steam, extending its decline through the session.

Earlier in January, eClerx Services had announced a bonus issue in the ratio of 1:1. The company had set March 13 as the record date to determine the eligibility of shareholders to receive the bonus shares.

What does this mean for shareholders?

If a shareholder owns one share of a company worth Rs 100, a 1:1 bonus issue will convert the holding into two shares worth about Rs 50 each. The total value of the holding remains unchanged at Rs 100.Once the stock begins trading ex-bonus, the price appears to fall sharply, but this simply reflects the adjustment following the corporate action.

Only shareholders who owned the stock on the record date are eligible to receive the bonus shares. Bonus issues consist of free shares distributed by a company from its reserves and are often seen as a sign of strong financial health and growth prospects.
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While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to invest in the stock.

eClerx Services Q3 results

Earlier in January, eClerx Services reported a 40% year-on-year jump in net profit to Rs 192 crore for the October-December quarter of the ongoing financial year 2026, as against Rs 137 crore in the year-ago period.

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The firm’s revenue from operations jumped 25% YoY to Rs 1,070 crore during the quarter under review. The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) stood at Rs 307 crore in Q3FY26 versus Rs 298 crore in Q2FY26, up 3%. The operating margin was down sequentially to 27.9% from 28.8% in Q2FY26. The EBIT figures stood at Rs 261 crore, gaining 2.1% QoQ and up by 35.9% YoY.

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