Bajaj Finance Ltd., one of India's leading non-banking financial companies (NBFCs), has announced a stock split and bonus issue, making its shares more accessible to retail investors. The stock split and bonus issue were implemented on June 16, 2025, following the company's Q4 FY25 earnings report.
Stock Split Details
Bajaj Finance has split its shares in a 1:2 ratio, meaning that each existing share with a face value of ₹2 has been divided into two shares of ₹1 each. This move aims to increase liquidity and make the stock more affordable for investors.
Bonus Issue Details
Alongside the stock split, Bajaj Finance has also issued a 4:1 bonus, meaning that shareholders will receive four additional shares for every one share held. This significantly increases the number of outstanding shares while adjusting the stock price accordingly.
Example Calculation:
If an investor held 50 shares before June 13, they would receive 200 bonus shares (50 × 4).
After the stock split, the total number of shares would become 500 (250 × 2).
While the number of shares increases, the overall investment value remains unchanged.
Impact on Share Price & Market Performance
Following the stock split and bonus issue, Bajaj Finance's share price adjusted from ₹9,340 to ₹937. This adjustment reflects the increased number of shares while maintaining the company's market capitalization.
The stock split and bonus issue make Bajaj Finance shares more accessible to retail investors, improving liquidity and broadening the investor base. While the fundamental value remains unchanged, these corporate actions enhance market participation.