One of India’s most prominent NBFCs, Bajaj Finance, has announced a corporate move that has the entire stock market buzzing. The company is preparing for a stock split and a hefty bonus issue, and investors are now racing to understand what it means for their holdings. With a record date set for June 16, this event could massively increase the number of shares investors hold — without changing their overall investment value.
Let’s break it all down.
📊 What’s Happening With Bajaj Finance?
Bajaj Finance declared multiple shareholder rewards in its April 2025 quarterly results, including:
- ₹44 per share final dividend (record date: May 30)
- 1:2 stock split (every ₹2 face value share split into two ₹1 shares)
- 4:1 bonus issue (four bonus shares for every one share held)
These moves are designed to improve liquidity and retail participation in the stock — a common strategy among large-cap companies after strong earnings performance.
🧾 Here’s How Your Shares Will Multiply
Let’s say an investor currently holds 100 shares of Bajaj Finance.
- After the stock split, the 100 shares become 200 shares (each of ₹1 face value).
- Post-split, the bonus issue kicks in. For every share held, investors will receive four bonus shares.
That means:
- 200 existing shares × 4 bonus shares = 800 new shares
So, final holding = 200 + 800 = 1,000 shares
However, it’s critical to note that while the number of shares increases, the total value of your holding remains the same. The market adjusts the price proportionally.
🧮 Why Companies Do Stock Splits and Bonus Issues
Stock splits and bonus shares don’t directly increase company value, but they do make shares more affordable and accessible, especially for small investors. Bajaj Finance shares trade at high prices, so these moves help improve liquidity and retail interest.
Such actions are usually signals of a company’s confidence in future performance — and Bajaj Finance has strong numbers to back that up.
📈 Bajaj Finance’s Recent Financial Performance
For the March 2025 quarter, Bajaj Finance reported:
- Net Profit: ₹4,545.6 crore, up 19% YoY
- Net Interest Income (NII): ₹9,807.1 crore
- Assets Under Management (AUM): ₹4.17 lakh crore, up 26% YoY
These figures indicate strong balance sheet health and growth momentum, supporting the company’s decision to reward shareholders.
🏦 What Brokerages Are Saying
Axis Securities has maintained a “Buy” rating, with a target price of ₹10,225 — implying nearly 10% upside from current levels. They expect:
- 25% AUM growth
- 26% NII growth
- 25% earnings growth over the next few years
They cite improved operating leverage, stable margins, and a positive view on asset quality.
Meanwhile, BNP Paribas is more cautious. While raising its target price to ₹11,120, it maintains a “Neutral” rating, citing stretched valuations in the NBFC space. Still, it admits that Bajaj Finance remains more attractive than many banking sector peers.
⏳ Key Date to Watch: June 16
To be eligible for the stock split and bonus, investors must hold Bajaj Finance shares by the record date — June 16, 2025. That means purchases should be made at least two trading days earlier, due to the T+1 settlement cycle in Indian markets.
After June 16, investors will receive their additional shares, and the adjusted share price will reflect the corporate action.
⚠️ What Should Investors Do?
This move is a positive signal, especially for long-term investors. With strong financials and rising institutional confidence, Bajaj Finance continues to be a blue-chip favorite. However, the increased number of shares and adjusted price may attract more short-term trading activity — so it’s essential to stay invested with a long-term view.
As always, consult a certified investment advisor before making major portfolio decisions.
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The information provided here is ai generated and for general information and educational purposes only. It is not intended to be personalized investment advice, nor should it be considered as a solicitation to buy or sell any security or financial product.
