Bajaj Finance Sets June 16 for Major Stock Split and Bonus Share Event
Bajaj Finance has unveiled a significant corporate action that aims to make its shares more accessible to investors and bolster market liquidity. The company will carry out a 1:2 stock split combined with a 4:1 bonus share issue, with June 16, 2025, designated as the record date. These measures are designed to lower the stock’s trading price and attract a broader base of retail investors.
Understanding the Corporate Action
The board of Bajaj Finance has sanctioned a 1:2 stock split, meaning each existing share with a face value of ₹2 will be split into two shares with a face value of ₹1 each.Following the split, the company will grant four bonus shares for each share owned. Effectively, for each share currently owned, investors will receive ten shares after the stock split and bonus issuance combined.
This dual approach will increase the total shares outstanding, resulting in a reduced price per share. This price adjustment is expected to enhance the stock’s affordability, making it easier for small and retail investors to participate.
Why Bajaj Finance Is Taking This Step
Bajaj Finance’s shares have historically traded at high price points—often above ₹8,000 to ₹9,000 per share—reflecting the company’s robust financial health and strong market position. However, such elevated share prices can be a barrier for retail investors who may find it difficult to invest in expensive stocks.
By splitting the shares and issuing bonus shares, Bajaj Finance aims to lower the effective share price without diluting shareholder value. This move will likely stimulate greater investor interest, increase trading volumes, and improve liquidity, thus creating a more dynamic market for its shares.
The decision aligns with the company’s strategic goal of widening its investor base and supporting sustainable growth.
Backing from Strong Financial Performance
The announcement comes alongside Bajaj Finance’s strong financial performance in Q4 FY25. The company reported a net profit of ₹4,546 crore, representing a 19% increase compared to the same quarter in the previous year. Net interest income (NII) grew by 22% year-on-year, reaching ₹9,807 crore, underscoring the company’s growing lending operations.
Showcasing strong growth, Bajaj Finance’s assets under management (AUM) rose 26% year over year to ₹4.16 lakh crore. The company also expanded its customer base by adding 3.6 million new clients during the quarter, bringing the total to over 83 million customers.
Importantly, Bajaj Finance has maintained asset quality, with net non-performing assets (NPAs) steady at a low 0.34%, reflecting prudent risk management practices.
Market Reaction and Share Price Movement
The stock market welcomed the announcement enthusiastically. On June 7 2025, Bajaj Finance’s shares jumped by more than 4%, hitting a fresh 52-week high of ₹9,785. The rise in share price was fueled not only by the news of the stock split and bonus shares but also by investor confidence buoyed by the company’s robust earnings.
Market analysts generally view stock splits and bonus issues favorably as they tend to attract retail investors and enhance stock liquidity, especially for companies with higher share prices.
Impact on Shareholders
For existing shareholders, the implications of this corporate action can be summarized as follows:
Each existing share with a face value of ₹2 will be split into two shares, each carrying a face value of ₹1.
Following the stock split, shareholders will be allotted four bonus shares for each share they hold.
This means each original share translates into 10 shares in total.
While the share count multiplies tenfold, the overall investment value will initially remain unchanged because the stock price will adjust downward proportionally. Over time, the increased liquidity and potentially wider investor interest could contribute to share price appreciation.
Key Dates to Remember
Event Date
Board approval April 29, 2025
Record date for entitlements June 16, 2025
Expected date for crediting shares Late June 2025
Looking Ahead
Bajaj Finance’s choice to carry out a stock split along with issuing bonus shares clearly reflects its commitment to increasing investor participation and enhancing market accessibility. Supported by its strong financial performance and prudent management, this step is likely to boost the company’s stock market presence and provide existing and new investors with attractive opportunities.
By making its shares more affordable and increasing liquidity, Bajaj Finance continues to solidify its standing as a leading financial institution in India’s rapidly evolving capital markets.
The image added is for representation purposes only
