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The board of Bajaj Finance announced two major corporate actions—a stock split and a bonus issue—alongside its Q4 results, released in April. The stock split is set to take place in the ratio of 1:2, while the bonus issue will be done in a 4:1 ratio.
The company has set Monday, June 16, as the record date for both the stock split and the bonus issue. So, if you’re a shareholder with Bajaj Finance shares in your Demat account by the close of trading on Friday, June 13, you’re eligible.
Here’s a simplified breakdown of what these corporate actions mean for you, taking into account that you hold 50 shares of Bajaj Finance:
What is Happening?
Stock Split:
Bajaj Finance is splitting each existing share with a face value of Rs 2 into two shares of Rs 1. This means your shares will double in number, but each share will be worth half as much in terms of face value. The market price is expected to adjust accordingly.
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Bonus Issue:
Along with the split, the company is also offering a 4:1 bonus issue, which means you get four extra shares for every share you own.
If you own 50 shares, here’s what you get:
First, you’ll receive 200 bonus shares (4 bonus shares x 50 shares).
That brings your total to 250 shares (original 50 + 200 bonus).
Next, all these 250 shares will undergo a stock split into two shares each.
After the split, you’ll end up with 500 shares in total.
However, it is important to note that while the number of shares increases, the overall value of your investment remains the same because the price per share will adjust proportionally.
Also read: Buy on dips if you believe in long-term India growth, 3 investment themes to bet on: Mihir Vora
When will this happen?
Bajaj Finance has stated that the allotment of bonus shares and the stock split will be completed on or before June 27.
Why does this matter?
Such corporate actions are often seen as investor-friendly moves. They increase liquidity, make the stock more affordable for new investors, and may boost trading activity.
While they do not directly increase the company’s value or investor wealth, they can have positive sentiment effects in the market.
So, if you’re a Bajaj Finance shareholder with 50 shares, expect to see 500 shares credited to your Demat account post June 27.
Bajaj Finance share price history
Over the past year, the shares of Bajaj Finance have delivered a 34.90% gain. On a year-to-date (YTD) basis, it has risen 37.84%, while the six-month return also stands at 37.88%. In the last three months, the stock has gained 14.60%, and in the past one month alone, it has advanced 10.66%, reflecting sustained positive momentum.
At 12:35 pm today, Bajaj Finance shares were trading nearly 1% lower at Rs 9,520.55 on the BSE.
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