Bajaj Finserv announces stock-split, bonus issue; Stock rallies over 3.5%

29 Jul 2022 , 09:20 AM

Bajaj Finserv Limited has announced the sub-division of each existing equity share of face value of Rs5/- into Five equity shares of face value of Rs1/- fully paid- up. The Company will complete corporate action on or before September 26, 2022. subject to necessary approvals.

Further, the Board approves issue of One bonus equity shares of face value of Rs1/- for every 1 fully paid-up equity share of Rs1/-.

Total number of securities proposed  to be issued are 7,96.404,635 nos. of equity shares of Rs1/- each fully paid up.

Rationale behind the split and issue of bonus shares is that the Company and it’s subsidiaries have grown significantly, in terms of business and performance, over the years. This is reflected in the share price of the Company, which touched a peak of Rs19,325 in October 2021. The price since then has hovered around Rs12,200.

As per regulatory filing, currently the retail/individual shareholders comprise 98% of the total number of shareholders which holds around 17.52% of paid-up value of shares. While having one  of the smallest capital bases, amongst its peers, the share price of the Company is one of the highest.

To reward the shareholders, the Board of Directors at its meeting held on July 28, 2022 has approved and recommended the said corporate actions.

At around 9:19 AM, Bajaj Finserv was trading at Rs15,177.40 per share up by Rs525.1 or 3.58% from its previous closing of Rs14,652.30 per share on the BSE.