Bajaj Finance Announces 1:2 Stock Split and 4:1 Bonus Shares – What Investors Should Know
India’s leading non-banking financial company, Bajaj Finance, has made headlines by announcing a 1:2 stock split and a 4:1 bonus share issue. The company has fixed Monday, June 16, 2025, as the record date for both corporate actions. This move is expected to increase liquidity in the stock and make it more affordable for retail investors.
What Does This Mean for Investors?
Here’s a simple breakdown:
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Stock Split (1:2):
Each share with a face value of ₹2 will be split into two shares of ₹1 each.
Example: If you own 10 shares before the split, you will own 20 shares after. -
Bonus Shares (4:1):
For every 1 share you hold on the record date, you’ll receive 4 additional shares.
Example: If you own 10 shares, you’ll get 40 more as a bonus, totaling 50 shares.
Why Is This Significant?
The announcement follows Bajaj Finance’s strong Q4 FY25 performance:
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Net profit: ₹4,546 crore, up 19% YoY
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Net interest income: ₹9,807 crore, up 22%
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New loans booked: 10.7 million, up 36% YoY
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Assets under management (AUM): ₹4.16 lakh crore, up 26%
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Customer base: Crossed 10 crore customers
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Stable NPAs: GNPA at 0.96%, Net NPA at 0.44%
Bajaj Finance’s stock closed at ₹9,372 on the NSE on Friday, June 7, jumping 5% after the RBI surprisingly cut the repo rate by 50 basis points, boosting the broader NBFC sector.
Full-Year Highlights (FY25):
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Consolidated Net Profit: ₹16,779 crore, up 16%
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PPOP: ₹30,028 crore, up 24% YoY
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Total Income: ₹11,917 crore for Q4
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Loan Provisions: ₹2,329 crore in Q4 (vs. ₹1,310 crore YoY)
What Should Investors Do?
The stock split and bonus shares will not change the fundamental value of your total investment, but they will:
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Improve stock liquidity
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Make the stock more affordable
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Potentially attract more retail investors
Long-term investors can see this as a sign of the company’s confidence in its performance and growth outlook.
Reference from:L-https://economictimes.indiatimes.com/markets/stocks/news/bajaj-finance-fixes-june-16-as-record-date-for-12-stock-split-41-bonus-equity-share/articleshow/121691519.cms?from=mdr