Bajaj Finance Mega Stock Split and Bonus Issue: How do these Corporate Actions Impact Shareholders?

Bajaj Finance Limited has announced a massive increase in shareholding (in terms of number of shares) for its existing shareholders through a series of stock splits and bonus issues. The 1:2 stock split, followed by a 4:1 bonus issue, will effectively turn every 10 shares into 100. The shareholders will witness a massive increase in the number of shares held, but it will not impact the value of their holdings. This move aims to enhance liquidity and market participation while reinforcing investor confidence.

On Thursday, 12th June, around 2:45 PM IST, the company share was trading at ₹9,375.50 a piece, lower by 0.53% than the previous day’s close (total volume in excess of 9,88,000 shares).

Key Eligibility and Timeline

To be eligible for the stock split and bonus shares, shareholders must hold Bajaj Finance stock by June 13, as the record date is June 16, 2025. In addition, the company has already declared a final dividend of ₹44 per share, with a separate record date set for May 30, 2025.

Breakdown of the Corporate Actions

Bajaj Finance’s board has approved two key measures:

• A stock split increases the number of outstanding shares by reducing the face value.
• Bonus issue adds to the shareholding without requiring additional shareholder investment.

This means that if an investor holds 100 shares in the company, it will become 200 after the split (of ₹2 Face Value). Post the bonus issue, the shareholder will receive 800 shares, taking the total shareholding to 1000, effectively meaning 10 shares will become 100 shares after the corporate actions are completed.

How Much Will You Get

If you held shares before the record date:

• For every 1 share, you will receive additional shares through the stock split and bonus issue.
• If you own 10 shares, your holding will become 100 shares after the adjustments.
• Additionally, for the final dividend:
  • If you held 10 shares as of May 30, you would receive a total dividend of ₹440 (₹44 × 10 shares).

Impact on Investors

The share price will adjust to reflect the increased number of shares, thereby not impacting the value of shares held. However, this move will result in liquidity boost and higher trading volumes. When combined with the ₹44 per share dividend, this signals robust shareholder returns and indicates Bajaj Finance’s confidence in its future performance.

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