By the end of June, those 10 shares could soon become 100. Here’s how it all unfolds and what it means for you.
Two big moves from Bajaj Finance
Bajaj Finance has approved two shareholder-friendly corporate actions:
- A bonus issue in the ratio 4:1, meaning you’ll get 4 additional shares for every 1 share you own.
- A stock split in the ratio 1:2, which splits each existing share of Rs 2 into two shares of Rs 1 each.
To be eligible, you must hold shares in your Demat account by the close of market on Friday, June 13, as the official record date is Monday, June 16.
Let’s break it down with an example of 10 shares
Step 1: Bonus Issue
You currently hold 10 shares. For every share, you get 4 bonus shares.That means:10 (existing) × 4 = 40 bonus shares.
So now you’ll have 10 + 40 = 50 shares after the bonus issue.
Step 2: Stock Split
Now, these 50 shares will undergo a stock split – each share will be split into two.
So, 50 × 2 = 100 shares in total after the split.
What does this mean for your investment?
While the number of shares you hold increases tenfold — from 10 to 100 — the value of your investment will remain the same initially, because the stock price is adjusted proportionally.
This move is not about immediate profit but about making the stock more affordable and accessible, potentially boosting liquidity and interest among retail investors.
When will it reflect in your Demat account?
Bajaj Finance has announced that the bonus shares and stock split will be completed by June 27. After this date, you should see the updated quantity in your account.
So if you’re holding just 10 shares today, you’ll see 100 shares after June 27 of Bajaj Finance when you log in on June 27.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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