The rally reflects investor enthusiasm after the finance major’s corporate restructuring move aimed at enhancing share liquidity and retail participation.
The rally reflects investor enthusiasm after the finance major’s corporate restructuring move aimed at enhancing share liquidity and retail participation. As per regulatory filings, investors who held the stock by 13 June 2025 were eligible to receive both split and bonus shares.
What Changed?
Under the new structure:
- Each share with a face value of Rs 2 was split into two shares of Rs 1 each.
To illustrate the impact, if an investor held 50 shares pre-record date, they would receive 200 bonus shares, increasing the tally to 250. Post-split, this number doubles to 500 shares. However, since the share price adjusts proportionally, the total investment value remains constant, ensuring there’s no dilution of wealth.
The record date for eligibility is 16 June 2025, but due to the T+1 settlement cycle, investors needed to purchase shares on or before 13 June to qualify.
Investor Response & Market Strategy
While the number of outstanding shares has now increased substantially, analysts suggest this could boost liquidity and daily trading volumes, supporting greater retail participation in the future.
Performance Snapshot
- 1-Year Return: 28 per cent
Bajaj Finance’s shares had closed flat on Friday at Rs 9,334.15, adjusting for corporate actions on Monday morning.
Market watchers believe the ex-split and ex-bonus rally might sustain in the short term due to increased investor interest, but also caution that valuation metrics remain unchanged. The corporate action does not alter company fundamentals, and hence future performance will hinge on earnings growth, asset quality, and macroeconomic cues.
