Bajaj Finance share price witnessed a sharp 90% drop, but investors need not panic. This fall is purely technical due to the Bajaj Finance bonus stock split and not a market crash. The Bajaj Finance stock split was executed in a 1:1 ratio, along with a 1:1 bonus issue, effectively adjusting the stock value. This Bajaj Finance share split move aims to increase liquidity and affordability. While Bajaj Finserv share also remains in focus, experts advise looking beyond numbers.
Bajaj Finance Share Plunges 90% After Bonus and Stock Split – Here’s the Real Story
After accounting for the adjustment, the shares are down 0.7 percent in early trading, which is consistent with the Nifty 50’s muted start and the general market malaise.
On April 29, the top NBFC declared a bonus issuance of shares at a 4:1 ratio. This implies that for each share of Bajaj Finance that an eligible shareholder owns, they will get four bonus shares. Additionally, a 1:2 stock split was declared by the corporation.
The shares were divided in a 1:5 ratio when the NBFC previously announced a split in 2016.
What it Means for Shareholders?
Following the stock split, these 50 shares will be divided into 100 shares at a 1:2 ratio. Therefore, following the bonus issue and stock split, the shareholder who had 10 shares on the record date will now own 100 shares of the firm.
Bajaj Finance also declared a special dividend of Rs 12 per equity share and a final payout of Rs 44 per equity share in addition to the stock split and bonus issue. As a result, the company’s total dividend for FY25 was Rs 56 per share.
The business said that the final dividend will be paid on or around July 28 and established May 30 as the record date to ascertain the eligibility of the shareholders. The special interim dividend’s record date was scheduled on May 9, and the company stated that qualifying shareholders will get their payout by May 26 at the latest.
Results for Bajaj Finance’s Q4FY25
Results for the January-March quarter of FY25 were made public by the NBFC on April 29. At Rs 4,480 crore, Bajaj Finance’s net profit increased 17% year over year. This exceeds the expected net profit of Rs 4,400 crore made by the five brokerages surveyed by Moneycontrol. Meanwhile, operational revenue increased to Rs 18,457 crore.
Strong credit demand helped Bajaj Finance’s assets under management grow by 26% during the quarter, while new loan bookings increased by 36% over the same period last year.
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