Bajaj Finance Board Fixes Record Date for 1:2 Stock Split and 4:1 Bonus Share Issue: Check Details Here

Mumbai, June 7, 2025 — In a strategic move aimed at enhancing shareholder value and boosting retail participation, Bajaj Finance Ltd, one of India’s leading non-banking financial companies (NBFCs), has announced the record date for its much-anticipated 1:2 stock split and 4:1 bonus share issue. The board, in a regulatory filing, confirmed that the record date has been fixed as Friday, June 14, 2025.

This corporate action follows the earlier approval by shareholders during the company's extraordinary general meeting (EGM) and is part of the company’s broader capital restructuring plan to improve liquidity and market accessibility.

Key Corporate Actions: Split and Bonus in Focus

According to the filing with the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), Bajaj Finance will carry out:

• Stock Split: Each equity share of face value ₹2 will be split into two shares of face value ₹1 each.

• Bonus Issue: For every one share held post-split, shareholders will receive four additional shares as bonus, implying a 4:1 bonus ratio.

This effectively means that a shareholder holding 1 share currently will own 10 shares after both the split and bonus issuance.

Why This Matters: Enhancing Liquidity and Participation

The twin actions — a stock split followed by a generous bonus — are expected to significantly increase the number of outstanding shares and reduce the stock’s price per share, making it more accessible to retail investors.

Analyst Commentary

“Such corporate actions are a strong signal of the management’s confidence in the company’s growth trajectory. A split and bonus together are often seen as wealth-enhancing steps for existing investors while improving stock liquidity,” said Arun Malhotra, Senior Analyst at Capwise Broking.

He added, “Bajaj Finance's consistent performance and robust balance sheet make it a strong candidate for such a reward. The move will also widen its investor base.”

Stock Market Reaction

Following the announcement, Bajaj Finance shares surged by 3.7% intraday to touch ₹8,245 on the NSE before settling at ₹8,200 by market close on June 7. The stock has seen considerable upward momentum in the past year, gaining over 45% on strong earnings and asset quality improvement.

The buzz surrounding the stock split and bonus issue had already fueled a rally since the board’s initial announcement in April.

Company Performance and Financial Health

Bajaj Finance reported a net profit of ₹4,212 crore in Q4 FY25, marking a 28% year-on-year rise. The company’s net interest income (NII) rose 24% to ₹8,050 crore, with healthy growth in its customer franchise and digital footprint.

Its asset under management (AUM) crossed ₹3.3 lakh crore as of March 2025, reflecting strong demand for consumer and SME lending across geographies. Despite macro headwinds, Bajaj Finance has maintained robust asset quality with gross NPAs at 0.94%.

Investor Outlook: What Should Shareholders Expect?

Investors holding shares as of the record date — June 14 — will be eligible for both the stock split and bonus shares. The ex-date is likely to be a few days before, tentatively June 13, when the stock will begin trading at its adjusted price.

The adjusted stock price post corporate action is expected to be one-fifth of the pre-record-date price. If the current share price is around ₹8,200, it will adjust to approximately ₹820 per share, factoring in the 10x increase in total shares held.

What Should You Do as an Investor?

• Existing Shareholders: Those holding shares should ensure holdings are reflected in demat accounts by the record date to qualify.

• Prospective Investors: Buying just before the ex-date may not fetch the split or bonus. Review your entry strategy with this timeline in mind.

Expert Tip:

“Retail investors often get carried away by bonus and split announcements. However, these are non-cash corporate actions. The value of your holding remains unchanged, although the number of shares increases. It’s critical to evaluate the company’s fundamentals,” noted Richa Agarwal, market strategist at Equity Insights.

What’s Next for Bajaj Finance?

The company is eyeing digital expansion and deepening its consumer loan portfolio, with plans to launch newer fintech offerings in FY26. It is also strengthening its rural lending operations, aiming to expand its reach to over 5,000 towns and villages.

Given its tech-led platform, low delinquency rate, and strong parentage under Bajaj Finserv, analysts believe the company is well-positioned for sustained growth.

Bajaj Finance’s latest move to announce a record date for its stock split and bonus issue reaffirms its commitment to creating long-term shareholder wealth and democratizing stock ownership. While the excitement is warranted, investors must align expectations with fundamentals and market dynamics.