Bajaj Finance Shares Fall 90% After Bonus and Stock Split – But Here's Why Investors Shouldn't Panic

If you checked Bajaj Finance’s share price today and saw a 90% drop, you might have been shocked. But don’t worry — it’s not a crash. It's simply a result of the company’s bonus issue and stock split, both of which were announced earlier.

📉 Why Did Bajaj Finance Share Price Drop?

On April 29, Bajaj Finance, one of India’s top NBFCs (Non-Banking Financial Companies), announced:

• A bonus issue in the ratio of 4:1 – meaning, for every 1 share held, investors would get 4 extra shares.

• A stock split in the ratio of 1:2 – each share is split into 2 shares, doubling the number of total shares.

So, effectively, for every 1 share, investors now hold 10 shares (1 original + 4 bonus = 5, and then each of those 5 got split into 2).

Naturally, when the number of shares increases, the price per share goes down proportionally. That’s why the stock price looks like it has crashed — but in reality, your total investment value remains the same.

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📊 What Does This Mean for Investors?

This price drop is not a cause for concern. It's mathematical and planned. In fact, such moves are generally seen as positive for investors. Here's why:

• More Liquidity: With more shares available at a lower price, it becomes easier for new investors to buy.

• Improved Accessibility: Retail investors who found the original share price too expensive can now afford to invest.

• Positive Outlook: Companies usually announce bonuses and splits when they are confident about their future growth.

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💡 Should You Do Anything Now?

No immediate action is needed. If you already own Bajaj Finance shares, your holdings have increased in quantity, and the overall value remains the same.

If you're a new investor, this could be a good time to consider investing in Bajaj Finance, as the lower price per share makes it more affordable — but always do your research or consult a financial advisor first.

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📝 Final Thoughts

Today’s 90% fall in Bajaj Finance's stock is just an adjustment, not a loss. It's a result of the bonus and stock split, and such corporate actions are common in growing companies. So, stay calm and stay invested!

Reference from:-https://www.moneycontrol.com/news/business/markets/bajaj-finance-shares-adjust-to-bonus-and-stock-split-why-you-should-ignore-the-90-percent-plunge-13125143.html