Bajaj Finance , one of India's leading non-banking financial companies, has announced a significant board meeting scheduled for April 29, 2025. The company's board of directors will convene to discuss and potentially approve several important corporate actions that could have a substantial impact on shareholders.

Key Proposals on the Agenda

The board meeting will consider the following proposals:

1. Stock Split (Sub-division of Shares): The company is set to discuss the potential sub-division of its existing equity shares, which currently have a face value of Rs. 2.00 each. This move, if approved, could increase the liquidity of the stock and make it more accessible to a broader range of investors.

2. Issuance of Bonus Shares: The board will deliberate on a proposal to issue bonus shares to its existing shareholders. This action, if implemented, would reward shareholders by increasing their shareholding without additional cost.

3. Q4 and FY2025 Results: The meeting will also address the financial results for the fourth quarter and the full fiscal year 2025.

4. Dividend Declaration: The board will consider declaring a dividend for the shareholders.

Historical Context

It's worth noting that Bajaj Finance's last bonus issue was in 2016. In June 2024, the company paid a dividend of Rs 36.00 per share.

Regulatory Compliance and Shareholder Approval

While the board will consider these proposals, the stock split and bonus issue will be subject to shareholder approval. These actions will be carried out in accordance with:

• Applicable provisions of the Companies Act, 2013 (including the rules framed thereunder)
• SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018

Potential Impact on Shareholders

If approved and implemented, these corporate actions could have several implications for Bajaj Finance's shareholders:

• The stock split could potentially make the shares more affordable and increase market liquidity.
• Bonus shares would increase the number of shares held by existing shareholders without diluting their ownership percentage.
• The dividend declaration, if approved, would provide a cash return to shareholders.

Next Steps

Investors and market watchers will be keenly awaiting the outcome of this board meeting. The company has stated that it will inform the stock exchanges about the decisions taken by the board as per regulatory requirements.

Bajaj Finance's move to consider these shareholder-friendly actions comes at a time when the company continues to be a significant player in India's financial services sector. The outcome of this board meeting could potentially set the tone for the company's capital structure and shareholder returns in the near future.

As always, shareholders and potential investors are advised to consider their individual financial situations and consult with financial advisors before making any investment decisions based on these potential corporate actions.

Bajaj Finance Limited (BFL), one of India's leading non-banking financial companies, has successfully raised Rs. 1,251.12 crore through the issuance of Non-Convertible Debentures (NCDs) via private placement. This strategic move, announced on April 9, 2025, demonstrates the company's proactive approach to fund raising and liquidity management.

Key Details of the NCD Issuance

The Debenture Allotment Committee of Bajaj Finance approved the allotment of 1,25,000 NCDs, each with a face value of Rs. 1 lakh. Here are the crucial details of the issuance:

Security and Repayment Structure

The NCDs are secured by a first pari-passu charge on Bajaj Finance's book debts and loan receivables. The company has committed to maintaining a security cover of not less than 1.00 time the aggregate outstanding value of the debentures issued under this placement.

Significance of the Move

This substantial fund-raising initiative through NCDs suggests that Bajaj Finance is positioning itself for potential business expansion or refinancing of existing debt. The long tenure of the debentures (10 years) indicates the company's confidence in its long-term growth prospects and its ability to attract investor interest for extended periods.

Market Implications

The successful placement of these NCDs at a coupon rate of 7.55% reflects the strong credit standing of Bajaj Finance in the market. It also demonstrates the company's ability to access funds at competitive rates, which could potentially translate to better lending rates for its customers or improved margins for the company.

Conclusion

Bajaj Finance's latest NCD issuance is a significant move that strengthens its capital base and provides long-term funding stability. As the financial services sector continues to evolve, such strategic financial maneuvers will likely play a crucial role in shaping the company's future growth trajectory and market position.