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Stocks To Watch Before Mid-November For Stock Split & Bonus Issue

  //stocks-investing.news-articles.net/content/202 .. re-mid-november-for-stock-split-bonus-issue.html
  Published in Stocks and Investing on Thursday, November 6th 2025 at 4:50 GMT by Goodreturns

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Why Focus on Split/Bonus‑Issue Stocks?

1. Price Accessibility – A 2:1 or 3:1 split halves or thirds the price per share, reducing the psychological barrier for smaller investors while keeping the underlying value unchanged.
2. Liquidity Boost – More shares on the market can improve trading volumes, tighten bid‑ask spreads, and potentially lift the share price as the market absorbs the extra supply.
3. Fundamental Signal – Companies that consistently return cash to shareholders, whether through dividends or bonus issues, are often viewed as financially robust and shareholder‑friendly.

The article notes that the Indian securities regulator has recently relaxed the criteria for bonus issues, allowing a broader range of firms to issue additional shares. Consequently, a wave of mid‑size and large‑cap names are on the agenda for the upcoming trading weeks.

Key Stocks Covered

Note: The share prices above are approximate figures from the last trading session before the article’s publication.

HDFC Bank – A Case Study

The article gives HDFC Bank a top spot because it is set to execute a 2:1 split in the last quarter of the fiscal year. Its robust credit portfolio and a net interest margin that has consistently outperformed peers make it an attractive pick for investors. The split is expected to reduce the share price from roughly ₹1,400 to around ₹700, making it more approachable for mid‑cap investors while preserving the bank’s market‑capitalisation.

Bajaj Finance – Cash‑Rich Approach

Bajaj Finance’s upcoming 20 % bonus issue is highlighted as an opportunity for investors to acquire more shares without paying additional capital. The company’s net interest income growth and disciplined risk management are cited as reasons for confidence in the move. The bonus issue is likely to be announced in the next earnings call, so traders should keep an eye on the company’s Q4 release.

Tata Motors – EV Outlook

Tata Motors is preparing a 3:1 split to broaden its investor base. The company’s transition toward electric vehicles (EVs) and its partnerships with international EV component suppliers are mentioned as catalysts that could keep the share price buoyant post‑split. Analysts predict that the split will help unlock value by making the stock more attractive to retail buyers.

Other Notable Names

The article also discusses the importance of fundamental metrics like the price‑to‑earnings (PE) ratio and dividend yield when evaluating split/bonus stocks. For instance, Sun Pharmaceutical’s 12 % bonus issue is underpinned by its solid R&D pipeline and global pipeline of new drugs, while Asian Paints’ 3:1 split comes at a time when its margin expansion is expected to continue. Meanwhile, the bonus issue at Adani Green Energy reflects its capital‑intensive projects in solar and wind farms, which the company has been able to fund with high internal cash generation.

Linking to Additional Resources

Within the Good Returns piece, there are hyperlinks that guide readers to deeper dives on specific companies:

1. Company Investor Relations Pages – Links to the latest earnings releases and shareholder announcements.
2. Sector‑Specific Analyses – For instance, a link to a recent article on the “Future of EV in India” that explains how Tata Motors’ split fits into a larger industry narrative.
3. Historical Split Performance Charts – These charts show how prior splits at HDFC Bank and Bajaj Finance affected share prices over the first quarter post‑split.

These supplementary sources add granularity to the article’s high‑level overview, offering investors more data points for informed decision‑making.

Bottom Line for Investors

• Timing is Crucial – Most of the discussed events are slated for the final quarter of the fiscal year, so investors should align their entry points accordingly.
• Liquidity Upside – A split or bonus issue can improve daily trading volume, potentially translating into a smoother price discovery process.
• Fundamental Foundation – While the mechanics of a split or bonus issue are attractive, the underlying company health remains the primary determinant of long‑term performance.

In summary, the Good Returns article identifies a well‑balanced group of Indian equity names that are likely to announce stock splits or bonus issues by mid‑November. These events offer investors a chance to acquire more shares at a lower nominal price, potentially unlocking value when coupled with strong fundamentals. Investors interested in these names should review the linked company filings and sector analyses to assess whether the upcoming events align with their risk tolerance and investment horizon.