BSE share price crashes 66% in a day? Here’s what caused this huge drop

BSE Ltd. shares experienced a significant decline of approximately 66.6% on May 23, 2025. This sharp drop is attributed to the stock trading ex-bonus, following the company’s 2:1 bonus issue. In a bonus issue, shareholders receive additional shares without any cost, leading to a proportional adjustment in the stock price. Therefore, the apparent crash reflects a technical adjustment rather than a fundamental issue with the company.

Financial Performance

In Q4 FY25, BSE Ltd. reported a remarkable 364% year-on-year increase in net profit, reaching ₹493 crore, up from ₹106 crore in the same quarter the previous year. Revenue from core operations surged by 75% to ₹847 crore, compared to ₹484 crore in Q4 FY24. Additionally, a final dividend of ₹23 per share was announced.

Despite strong financial results, BSE Ltd. faces challenges from increased competition. The National Stock Exchange (NSE) shifted its equity derivative contract expiry day from Thursday to Monday, effective April 4, 2025. This change could impact BSE’s market share in options trading, as it reduces the time gap between expiry days, potentially affecting trading volumes. Brokerage firms like Nuvama and Goldman Sachs have adjusted their target prices for BSE Ltd. in response to these developments.

Conclusion

The recent decline in BSE Ltd.’s share price is primarily due to the ex-bonus adjustment and increased competition in the derivatives market. Investors should consider these factors when evaluating the stock’s performance.