New Delhi, June 12 -- Shares of City Union Bank appeared to have plunged over 23% on Friday, 12 June, on BSE. However, this fall was because the banking stock turned ex-bonus today following the implementation of the lender's 1:3 bonus issue. This resulted in the stock price appearing significantly lower.

While the stock seemed to have fallen sharply at the opening bell, the decline was purely a technical adjustment related to the bonus issue and did not indicate any destruction of shareholder wealth.

The stock opened at Rs.197.40 apiece on the NSE, substantially below its previous closing price of Rs.256.80. At first glance, the nearly 23% drop could have appeared alarming to investors. However, the adjustment reflected the impact of t...