Large-Cap Bajaj Finance Ltd Announces 4:1 Bonus Issue and 1:2 Stock Split – Record Date Fixed!
Bajaj Finance Ltd., a heavyweight in India’s financial services sector, just sent waves across Dalal Street! The large-cap titan, with a whopping ₹5.82 lakh crore market cap, has pulled the trigger on two shareholder-friendly moves: a 1:2 stock split and a 4:1 bonus issue. According to a regulatory filing, both these actions will be implemented based on shareholding as on Monday, 16 June 2025.
Bajaj Finance, on June 6, announced the record date for for 1:2 stock split and 4:1 bonus share issue. The NBFC stock closed 5 per cent higher on Friday at ₹9,372 apiece. More shares, more liquidity, and a bigger buzz around one of India’s most trusted NBFCs.
Company Snapshot
- Market Cap: ₹5,82,372 crore (as of June 2025)
- Promoter Holding: 54.7%
- Sector: Non-Banking Financial Company (NBFC)
- Reputation: A darling of retail and institutional investors alike
Known for its robust financial performance, conservative lending model, and consistent returns, Bajaj Finance remains a solid long-term player.
What Is a Stock Split?
Let’s break it down: A stock split is when a company divides its existing shares into multiple ones to boost liquidity and affordability.
Imagine having 1 pizza split into 2 slices instead of 1. You don’t get more pizza — just more slices.
Bajaj Finance’s 1:2 Stock Split Explained
In Bajaj Finance’s case:
- Every 1 share of ₹2 face value will now become 2 shares of ₹1 each.
- Example: If you own 10 shares pre-split, you’ll own 20 shares post-split — but the total value remains the same.
Why do this?
- It brings down the per-share price.
- Makes the stock accessible to a larger investor base.
What Is a Bonus Issue?
A bonus issue is when a company gives free additional shares to its existing shareholders from its reserves.
Think of it as a “thank you” gift — no money paid, no shares bought — just more shares for staying loyal.
Bajaj Finance’s 4:1 Bonus Issue Details
This is big: for every 1 share you hold, you’ll get 4 bonus shares. Yes, you read that right!
Let’s say you own 10 shares:
- After bonus: 10 (original) + 40 (bonus) = 50 shares
Add the split to that and you’ve got:
- 50 shares × 2 (split) = 100 shares post both actions
It’s raining shares!
Key Highlights from the Exchange Filing
- Stock Split Ratio: 1 share (₹2) split into 2 shares (₹1)
- Bonus Ratio: 4 bonus shares for every 1 held
- Record Date: Monday, June 16, 2025
- Eligibility: Shareholders on record as of that date
Market Reaction
The stock saw a spike in trading volume and bullish sentiment right after the news broke. Analysts praised the move for its retail inclusiveness, and long-term investors are smiling wide.
Historical Precedents
Such corporate actions aren’t new. Tech Mahindra, HDFC Bank, and Infosys have all used similar strategies to:
- Improve liquidity
- Widen retail participation
- Keep share prices psychologically attractive
Bajaj Finance itself has rewarded shareholders multiple times in the past with consistent performance and strategic moves.
Why Is Bajaj Finance Doing This?
Simple:
- More Liquidity: With more shares in the market, trading becomes easier.
- Attract Small Investors: A lower share price post-split is more affordable.
- Strengthen Market Presence: Creates a sense of inclusivity among retail investors.
What This Means for Retail Investors
You’re getting more shares without spending a rupee. It’s like getting extra scoops of ice cream for the same price.
- Higher Share Count
- Better Liquidity
- Potential for Higher Returns in Bull Markets
Impact on Promoter Holdings
While the number of promoter shares increases, the percentage of ownership remains the same.
- Before: 54.7%
- After: 54.7% (just split into more units)
No dilution, just a reclassification.
Taxation & Compliance
Bonus shares aren’t taxed at the time of receipt but can be taxed at the time of sale.
Stock splits don’t attract tax either — but do update your capital gains computation accordingly.
Pro tip: Keep all broker statements and demat records handy for future tax returns.
Expert Opinions and Brokerage Views
Brokerages like ICICI Direct and Motilal Oswal have marked this move as “bullish”, suggesting it’s a good time to accumulate Bajaj Finance for the long term.
Expert takeaway: “This move enhances accessibility without diluting shareholder value — a rare win-win.”
How to Check Eligibility
Only shareholders whose names appear in the company’s books as of June 16, 2025, are eligible.
To qualify:
- Ensure your shares are in your demat account by at least two trading days before (June 13, 2025, due to T+1 settlement)
- No additional steps required — bonus/split happens automatically
Bajaj Finance’s decision to roll out a 1:2 stock split and a 4:1 bonus share issue is a power-packed signal of confidence and growth intent. For retail investors, it’s a golden opportunity to increase holdings, enjoy greater liquidity, and potentially benefit from future appreciation.
As June 16 approaches, it’s time to double-check your holdings, watch market movements, and maybe — just maybe — gear up to add more Bajaj Finance to your basket.
FAQs
1. What is the record date for the Bajaj Finance bonus and split?
The record date is Monday, 16 June 2025.
2. Will the share price fall after the bonus and split?
Yes, the price will adjust proportionately, but your total investment value remains unchanged.
3. Do I need to buy shares before or on the record date?
Buy at least two trading days before the record date to be eligible, due to T+1 settlement.
4. What happens to the face value of shares after the split?
It will reduce from ₹2 to ₹1 per share post the 1:2 split.
5. Will my overall investment value change?
No. Your number of shares increases, but the total value stays the same (initially).
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