Bajaj Finance Ltd , one of India's leading non-banking financial companies, has made significant announcements regarding its corporate actions and financial performance, signaling a robust outlook for the company and its shareholders.

Stock Split and Bonus Issue

Bajaj Finance has set June 16, 2025, as the record date for its much-anticipated 1:2 stock split and 4:1 bonus issue. These corporate actions, which received overwhelming support from shareholders with over 97% votes in favor, are expected to enhance the stock's liquidity and make it more accessible to a broader range of investors.

• Stock Split: The 1:2 stock split will divide each existing share into two shares, effectively halving the face value of each share.
• Bonus Issue: The 4:1 bonus issue will reward shareholders with four additional shares for every one share held.

These moves are likely to be viewed positively by the market, potentially leading to increased trading activity and improved shareholder value.

Q4 Financial Performance

Alongside the corporate action announcements, Bajaj Finance reported its financial results for the fourth quarter, showcasing strong growth and operational efficiency.

Key Highlights:

• Consolidated Profit After Tax: Rs 4,545.57 crore, up 18.85% year-over-year
• Revenue: Rs 18,166.80 crore, a 24.00% increase from the previous year
• Earnings Per Share (EPS): Rs 72.35, up 16.86% year-over-year

Financial Performance Table:

Operational Efficiency

Bajaj Finance demonstrated improved operational efficiency in Q4:

• Operating Profit Margin (OPM): 66.79%, reflecting the company's ability to manage costs effectively despite market challenges.
• Expenses: Rs 6,026.20 crore, a 36.34% increase from the previous year, indicating investments in growth and expansion.

Outlook

The strong financial performance, coupled with the upcoming stock split and bonus issue, positions Bajaj Finance favorably in the market. These strategic moves are likely to enhance shareholder value and attract new investors, potentially driving further growth for the company.

As Bajaj Finance continues to navigate the dynamic financial services landscape, investors and market watchers will be keen to observe how these corporate actions and robust financial results translate into long-term value creation and market performance.

Bajaj Finance Ltd, a leading non-banking financial company in India, has announced significant corporate actions that are set to benefit its shareholders. The company has declared a record date for both a bonus issue and a stock split, which will effectively increase the number of shares held by existing investors.

Key Details of the Corporate Action

• Record Date: June 16
• Bonus Issue Ratio: 4:1 (four bonus shares for every one share held)
• Stock Split Ratio: 1:2 (one share will be split into two)
• Completion Target: June 27

Impact on Shareholders

The combined effect of these corporate actions will be substantial for Bajaj Finance's shareholders. To illustrate:

• A shareholder owning 50 shares on the record date will end up with 500 shares after the completion of both the bonus issue and the stock split.

Process Breakdown

1. Bonus Issue (4:1): For every one share held, shareholders will receive four additional shares. This will increase the shareholding by 5 times.

   • 50 original shares will become 250 shares (50 x 5)

2. Stock Split (1:2): Each share will then be split into two shares.

   • 250 shares from the bonus issue will become 500 shares (250 x 2)

Significance of the Move

These corporate actions are typically viewed positively by the market as they:

1. Increase the liquidity of the stock by making more shares available in the market.
2. Make the stock more accessible to small investors due to the reduced per-share price.
3. Signal management's confidence in the company's future prospects.

However, it's important to note that while the number of shares will increase, the overall value of a shareholder's holding remains the same, as the stock price adjusts proportionately.

Bajaj Finance shareholders should ensure their details are up to date with their brokers or in the company's records to benefit from this corporate action. The company aims to complete this exercise by June 27, marking a significant event in its corporate calendar.