Investors who held the stock as of Friday, June 13, will be eligible to receive both the split shares and the bonus allotment.
As per the company’s corporate announcement, Bajaj Finance is executing a stock split in the ratio of 1:2, meaning each share with a face value of Rs 2 will be split into two shares of Rs 1 each. In addition to the split, the company is also issuing bonus shares in a 4:1 ratio, entitling shareholders to receive four additional shares for every one share held.
The record date for determining eligible shareholders is Monday, June 16, but due to the T+1 settlement cycle, investors had to purchase shares on or before Friday, June 13 to qualify for the benefits.
To understand the impact, if an investor held 50 shares of Bajaj Finance before the record date, they would first receive 200 bonus shares (4 for each existing share), taking the total to 250.
These 250 shares would then be split in a 1:2 ratio, resulting in 500 shares in total post-corporate action.However, while the number of shares increases, the overall investment value remains the same, as the market price adjusts proportionally.
Bajaj Finance share price history
Over the past one year, the shares of Bajaj Finance have gained 28%, while the year-to-date (YTD) return stands at 34.56%. In the last six months, the stock has risen by 29.89%, and over the three-month period, it has delivered a 10.87% return. On a one-month basis, the stock is up 3.22%.
On Friday, the shares of Bajaj Finance closed flat at Rs 9,334.15 on the BSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
By
