With a big corporate action to improve liquidity and retail investor participation, Bajaj Finance Ltd has announced a 1:2 stock split along with a 4:1 bonus issue. The record date for both the stock split and the bonus issue is fixed for June 16, 2025.
Key Highlights
Stock Split:
- Ratio: 1:2 (Every share of face value ₹2 will be divided into 2 shares of ₹1)
- Purpose: To enable investors to buy the stock at a lower price and to improve liquidity
Bonus Issue:
- Ratio: 4:1 (Four bonus shares will be given after the split for every one share)
- Eligibility: Shareholders who are on the books as of June 16 will be eligible.
Record Date:
- June 16, 2025 (This date will be used to identify the eligible shareholders for the split and bonus)
What Does This Mean for Investors?
If you hold 1 share of Bajaj Finance as of the record date:
- After the 1:2 stock split, your holding will become 2 shares
- Then, you will get 4 bonus shares for every 1 share i.e., 8 bonus shares
- Final holding: You will have a total of 10 shares (1 original share turns into 10)
Market Impact
- The board of Bajaj Finance has given their consent to this decision to increase the liquidity of the stock, boost the participation of small investors and make the shares more affordable.
- The analysts are optimistic that after the corporate action, a renewed retail interest and higher trading volumes will be seen.
The declaration has also led to positive sentiment in the market, with the stock exhibiting strength even in the face of overall volatility.
Why It Matters
Stock splits and bonus issues do not change a company’s fundamentals, but they:
- Lower the price per share
- Make it easier for small investors to enter the market
- Demonstrate management confidence in business expansion
Given the strong track record of Bajaj Finance in recent quarters, this move is seen as a shareholder-friendly move.
Quick Summary
| Action | Details |
|---|---|
| Stock Split | 1:2 (₹2 face value → ₹1) |
| Bonus Issue | 4:1 (Post-split basis) |
| Record Date | June 16, 2025 |
| Total Effective Increase | 1 share becomes 10 shares |