The shares of Bajaj Finance have on June 16 resumed trade after adjusting stock split and bonus issue with effect from today, opening at Rs 956 apiece, nearly 90 percent lower than the previous closing price of Rs 9,331 apiece.
Factoring in the adjustment, the shares are lower by 0.7 percent in early trade, in-line with the broader market weakness and a subdued start to the Nifty 50.
The leading NBFC on April 29 had announced a bonus issue of shares in the ratio of 4:1. This would mean that the eligible shareholders will receive 4 bonus shares for every single Bajaj Finance share they own. Additionally, the company also announced a stock split in the ratio of 1:2.
The NBFC had last announced a share split in 2016, dividing the shares in 1:5 ratio at that time.
What it Means for Shareholders?
A Bajaj Finance shareholder who already owned 10 shares of the company as on the record date June 16 would get an additional 40 shares after the bonus issue in the ratio of 4:1 and will subsequently have a total of 50 shares of the company. Those buying shares on June 16 will not be eligible for the bonus shares.
These 50 shares will then split into 100 shares after the stock split takes effect in the ratio of 1:2. Hence, the shareholder who had 10 shares as on the record date, will have 100 shares of the company after the bonus issue and stock split.
Along with the stock split and bonus issue, Bajaj Finance had also announced a final dividend of Rs 44 per equity share and a special dividend of Rs 12 per equity share. This took the total dividend announced by the firm to Rs 56 per share during FY25.
The company had set the record date to determine the eligibility of the shareholders set to receive the final dividend on May 30, and said that it will be paid on or around July 28. The record date for the special interim dividend had been set on May 9 and the firm said that it will be paid to the eligible shareholders on or around May 26.
Bajaj Finance Q4FY25 Results
The NBFC had released its results for the January-March quarter of FY25 on April 29. Bajaj Finance's net profit rose 17 percent year-on-year to Rs 4,480 crore. This is higher than the Rs 4,400 crore net profit estimated by the five brokerages polled by Moneycontrol. Revenue from operations meanwhile rose to Rs 18,457 crore.
Bajaj Finance's assets under management grew 26 percent during the quarter, helped by strong demand for credit, while new loan bookings jumped 36 percent from a year ago.
Net interest income increased by 22 percent in Q4FY25 to Rs 9,807 crore from Rs 8,013 crore in Q4FY24. This also beat Moneycontrol's poll estimate of Rs 9,660 crore.
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