By Prashant Marathe | 23 May 2025 | EduInvesting
📌 At a Glance
This morning, traders across India nearly spilled their chai when BSE Ltd appeared to crash from ₹2,940 to ₹950 — a “67% wipeout”.
X (formerly Twitter) exploded.
WhatsApp groups went DEFCON 1.
Even your cousin Ramesh who bought 2 shares last year asked if SEBI had filed for bankruptcy.
But here’s the truth:
It was a stock split.
Not a scandal. Not a crash. Just… math.
🪓 What Actually Happened?
✅ Stock Split 1:2
- BSE Ltd went ex-split on 23 May 2025
- Face value changed from ₹2 to ₹1
- Shares doubled in quantity, price halved
So if you had 10 shares at ₹2,940 = ₹29,400
Now you have 20 shares at ₹1,470 = ₹29,400
Nothing changed. Except the collective IQ of India’s brokerage apps.
🧾 Why Did Some Apps Show a 67% Crash?
Because their backends compared:
- New price: ₹950 (some real-time lags or bad ticks)
- Old price: ₹2,940
And displayed: –67.7% like it was 2008 again.
Plot twist: the CMP was never ₹950. It opened around ₹1,400+ — totally normal post-split pricing.
🔍 What’s a Stock Split Again?
For the confused:
A stock split is when a company cuts the price of each share, but gives you more shares — so your total value stays the same.
In this case:
- Face value halved
- Shares doubled
- Your holding = same rupees
Think: “Ek Cadbury 40₹ ka, ya do Cadbury 20₹ ke. Chocolate utna hi.”
🧠 EduInvesting Take
This wasn’t a crash. This was a coding lag + trader panic + face value misunderstanding.
But the panic tells us a lot about:
- How fragile market confidence is
- How poorly some platforms update corporate actions
- How easily misinformation spreads when charts show big red arrows
Next time your broker shows -67%, maybe… don’t sell in a hurry?
🧮 Did Anything Actually Happen to BSE Ltd?
No bad news. In fact:
- It’s fundamentally strong
- Profitable
- Gaining from higher trading volumes and IPO boom
- The split was meant to increase retail participation — making shares look cheaper
📊 Quick Snapshot
| Before Split | After Split |
|---|---|
| Price: ₹2,940 | Price: ₹1,470 |
| Shares: 1 | Shares: 2 |
| Face Value: ₹2 | Face Value: ₹1 |
| Total Holding: ₹2,940 | Total Holding: ₹2,940 |
🚨 What to Do If You Saw the Crash?
- Don’t panic.
- Check the corporate action section.
- Do the math before you rage-tweet.
- Don’t call your CA crying. He’s busy dealing with ITR 3.
🏷️ Tags
BSE Stock Split, BSE 67% Crash, EduInvesting, NSE BSE Confusion, Stock Split Explained, Face Value Change, Broker App Error, Indian Stock Market, Midcap Panic, Trading Psychology
