SYNOPSIS: Autoriders International shares plunged 83 percent on 18th November, solely due to a technical adjustment after its 5:1 bonus issue, with the sharp drop reflecting the ex-bonus price revision – not any fundamental decline.
During Tuesday’s trading session, shares of a company involved in providing car rental services to corporates and tourists with all India networks of branches witnessed a sharp decline of nearly 83 percent on the BSE. What triggered this steep fall? Let’s break it down in this article.
What’s the News:
With a market cap of Rs. 295.6 crores, shares of Autoriders International Limited witnessed a sharp fall on Tuesday, 18th November, plunging nearly 83.3 percent to Rs. 849.45 on BSE. While the drop appeared steep, it was purely a technical adjustment as the stock traded ex-bonus following a 5:1 bonus issue.
A bonus issue is a corporate action in which a company allots additional shares to existing shareholders at no extra cost by capitalising its free reserves. While the number of shares held by an investor increases, the overall investment value remains unchanged in the short term, as the share price typically adjusts proportionately on the ex-bonus date.
Back on 29th September, the company’s board had approved the bonus issue in the ratio of 5:1, meaning shareholders would receive five new fully paid equity shares for every one share held on the record date.
As a result of this adjustment, Autoriders International’s shares appeared to decline sharply by more than 83 percent, but in reality, this just reflected the corporate action.
Financials & More:
Autoriders International reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 12 percent, from Rs. 22.07 crores in Q2 FY25 to Rs. 24.6 crores in Q2 FY26.
In contrast, the company’s net profit decreased during the same period from Rs. 2.7 crores to Rs. 2.4 crores, representing a decline of over 11 percent YoY. As per the September 2025 shareholding pattern with the BSE, the ace investor Mukul Mahavir Agrawal holds a 10.56 percent stake in the company.
Autoriders International Limited is a premium car rental service provider offering chauffeur-driven cars, self-drive rentals, airport transfer services, and long-term rentals across many cities in India. It caters to both corporate clients and tourists, maintaining a diverse fleet ranging from basic city vehicles to luxury sedans and SUVs.
The company focuses on delivering excellent customer service with professional drivers and well-maintained vehicles for stress-free, reliable travel experiences. It operates through multiple branches in many metropolitan cities, aiming to be a trusted name in India’s car rental and chauffeured transportation industry.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
