HDFC AMC announces 1:1 bonus to shareholders

On 15 October 2025, HDFC Asset Management Company Limited (HDFC AMC) announced its first-ever bonus issue. It will be the first-ever bonus issue by the company since its listing in 2018. The company will reward its shareholders with one bonus share for every share they own of HDFC AMC. This means your shareholding, which is the number of shares you own, will double automatically. However, the overall value of holdings will remain the same because the share price of the company will fall in the ratio of the bonus allotment. 

Here are the key details of the bonus issue by HDFC AMC: 

• Face value: ₹5
• Bonus Ratio: 1:1
• Ex-date & effective date: 26th Nov 2025
• Purpose: To reward shareholders and enhance market liquidity 

After the bonus issue, the paid-up share capital would be doubled from ₹107 crore (21.4 crore shares) to ₹214 crore (42.8 crore shares).The record date for determining eligible shareholders has been fixed as Wednesday, November 26, 2025. This means if you are holding shares of HDFC AMC on this date, you will be entitled to receive bonus shares. The allotment of bonus shares will be done by December 14, 2025. 

The issue will be funded through: 

• Capitalization of ~₹107 crore from company’s reserves, including ₹52.41 crore from the Capital Redemption Reserve, and  
• ₹760.23 crore from the Securities Premium Account as of September 30, 2025. 

HDFC Asset Management Company Ltd is one of India’s largest AMC and is a joint venture between HDFC Ltd and abrdn Investment Management Ltd. Navneet Munot, MD & CEO of HDFC AMC, mentioned that the company’s first-ever bonus issue reflects its strong performance and commitment to rewarding shareholders. “Our consistent growth and profitability indicate the strength of our business model and our intention to create long-term value,” said Mr. Munot. 

FAQs

Why is HDFC AMC issuing bonus shares?

HDFC AMC is issuing bonus shares to reward shareholders, capitalise reserves and increase the liquidity of their shares in the market.  

Who is eligible to receive HDFC AMC bonus shares?

Shareholders of HDFC AMC who own the company shares before the 26 November 2025 (ex-date) will be eligible to receive bonus shares.

Has HDFC AMC ever issued bonus shares?  

No, HDFC AMC has never issued bonus shares. This will be the company’s first ever bonus issue in its history.

Has HDFC AMC paid dividends to its shareholders?

Yes, HDFC AMC has paid several dividends to its shareholders, even though it never issued bonus shares to them. Since 2019, the company has paid dividends worth ₹336 per share to its shareholders, including ₹90 per share that it paid in June this year.