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.

Bajaj Finance 's stock price soared 3.61% following the announcement of a stock split and bonus share issue, coupled with strong Q4 financial results. The company has set June 16, 2025, as the record date for a 1:2 stock split and a 4:1 bonus share issue, signaling confidence in its growth trajectory and rewarding shareholders.

Q4 Financial Highlights

Bajaj Finance reported a robust performance for the fourth quarter:

• Net Profit: Rs 4,545.60 crore, up 19% year-on-year (YoY)
• Net Interest Income: Rs 9,807.00 crore, increasing 22% YoY
• Revenue: Rs 18,166.80 crore, growing 24% compared to the previous year
• Earnings Per Share (EPS): Rs 72.35, up 16.86% YoY

Financial Performance Analysis

The company's Q4 results demonstrate strong growth across key financial metrics:

Bajaj Finance's impressive performance can be attributed to its strong business model and effective management strategies. The company's ability to grow its net interest income by 22% YoY to Rs 9,807.00 crore indicates robust lending activities and improved interest margins.

Stock Split and Bonus Issue

The announcement of a stock split and bonus issue has been well-received by investors, as reflected in the 3.61% surge in the company's stock price. These corporate actions are designed to:

1. Increase Liquidity: The 1:2 stock split will make shares more affordable and potentially increase trading volume.
2. Reward Shareholders: The 4:1 bonus issue effectively gives shareholders four additional shares for every one share held, without any cost.
3. Signal Confidence: These moves often indicate management's positive outlook on the company's future prospects.

Outlook

Bajaj Finance's strong Q4 performance and shareholder-friendly actions paint a positive picture for the company's future. The consistent growth in revenue and profitability, coupled with strategic initiatives to enhance shareholder value, positions Bajaj Finance well in the competitive financial services sector.

Investors and market analysts will likely keep a close watch on how these corporate actions impact the stock's performance and the company's growth trajectory in the coming quarters.