Bajaj Finance Announces Bonus Issue and Stock Split
Bajaj Finance, one of India’s leading non-banking financial companies (NBFC), recently announced a bonus issue and a stock split, creating buzz among investors. The company aims to improve stock liquidity and increase retail participation.
So what happens if you currently hold 100 shares of Bajaj Finance? Here's the detailed breakdown:
1. Stock Split Details
Stock Split Ratio: 1:5
What It Means: Every 1 existing share will be split into 5 shares.
Effect: If you have 100 shares, after the split, you will have 500 shares.
2. Bonus Issue Details
Bonus Ratio: 1:1
What It Means: You get 1 bonus share for every 1 share you hold post-split.
Effect: After receiving 500 shares from the split, you will get 500 bonus shares.
✅ Final Result if You Had 100 Shares Initially:
| Action | No. of Shares |
|---|---|
| Original Shares | 100 |
| After 1:5 Stock Split | 500 |
| After 1:1 Bonus Issue | 500 (bonus) |
| Total Shares | 1,000 |
Your original 100 shares will become 1,000 shares in total after the stock split and bonus issue are applied.
Why Is Bajaj Finance Doing This?
The objective is to increase affordability and trading volume of the stock, especially for retail investors. As Bajaj Finance shares trade at a high price, a stock split followed by a bonus helps in making the shares more accessible.
Important Dates (Tentative):
Record Date for Stock Split: To be announced
Record Date for Bonus Shares: To be announced
Investors are advised to stay updated with Bajaj Finance’s official announcements and check their demat accounts post-event.
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