Bajaj Finance’s stock is set to go ex-date on Monday. This means that investors looking to be eligible for both the stock split and the bonus issue must purchase the shares by today.
If you buy a stock on or after the ex-date, you will not receive the upcoming dividend. To receive the dividend, you must purchase the stock before the ex-date. The ex-date is the cut-off point set by the stock exchange, and only shareholders who own the stock before this date are eligible.
Bajaj Finance shares are trading down 1.50 percent from yesterday’s close. The last five days’ return for the stock is -2.50 percent. Additionally, the yearly return for the stock is 26 percent, and the past 5 years’ return is an impressive 277 percent.
Bonus & Split Issue
Bajaj Finance has announced two significant corporate actions: a stock split followed by a bonus issue. Under the stock split, each existing equity share with a face value of Rs. 2 will be split into two equity shares of Rs. 1 each. This move aims to enhance liquidity and make the stock more affordable for retail investors.
Following the split, the company has declared a 4:1 bonus issue, meaning shareholders will receive four additional shares for every one share held (post-split). While these actions will increase the number of outstanding shares substantially, they will not affect the overall value of shareholders’ investments.
The company will first carry out a stock split where each equity share of face value Rs. 2 will be split into two equity shares of Rs. 1 each. For example, if you hold 1 share with a face value of Rs. 2 before the split, after the split, you will hold 2 shares with a face value of Rs. 1 each. While the total investment value remains unchanged, the number of shares doubles and the face value per share is halved from Rs. 2 to Rs. 1.
After the stock split, the company will issue a bonus in the ratio of 4:1 on the Rs. 1 face value shares. This means shareholders will receive 4 bonus shares for every 1 share held. For example, if you originally had 1 share of Rs. 2 face value, after the split, you now have 2 shares of Rs. 1 each. On these 2 post-split shares, you will receive 2 × 4 = 8 bonus shares. So, in total, you will end up with 10 shares, 2 original (post-split), and 8 bonus shares.
Bajaj Finance Limited, headquartered in Pune, is one of India’s leading non-banking financial companies (NBFCs) and a key subsidiary of Bajaj Finserv. Originally incorporated in 1987 as Bajaj Auto Finance, the company has evolved into a diversified financial services provider offering a broad range of products, including consumer finance, SME lending, commercial lending, and wealth management.
The company reported a 23.65 percent YoY increase in revenue from Rs. 14,926 Crore in Q4FY24 to Rs. 18,457 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 2.33 percent in revenue from Rs. 18,035 Crore in the previous quarter.
Their Net profit saw an increase of 18.84 percent YoY from Rs. 3,825 Crore to Rs. 4,546 Crore for the same period. On a QoQ basis, the company reported an increase of 5.52 percent in Net profit from Rs. 4,308 Crore in the previous quarter.
Written By Abhishek Das
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.
