Shares of Autoriders International Limited, which has a market cap of Rs 295 crore, witnessed a sharp fall on Tuesday. The stock plunged nearly 83.3 per cent to Rs 849.45 on the BSE. While this drop might appear alarming to investors, it was purely a technical adjustment as the stock began trading ex-bonus. Advertisement

The 83 per cent decline does not reflect a fundamental loss in value but is an adjustment for the company's 5:1 bonus issue. In fact, after the price adjustment, the stock showed strength in early trade, rising to Rs 849.45. The real price change is this modest movement, not the large notional drop. As of 12:15 PM, the stock was trading just 0.02 per cent lower at Rs 849.45 on the BSE.

The company's board had approved a bonus issue in the proportion of 5:1, meaning five

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