Bajaj Finance Share Split & Bonus Issue 2025 Explained
June 23, 2025 | Mumbai: In a significant move aimed at enhancing shareholder value and market participation, Bajaj Finance Limited, one of India’s most prominent non-banking financial companies (NBFCs), has executed a stock split and bonus share issue, effective June 16, 2025. The twin corporate actions have caused a stir in the equity markets, with investors witnessing a massive change in the share price and quantity in their portfolios.
🔍 What Actually Happened?
Bajaj Finance carried out two major shareholder-friendly steps:
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Stock Split (1:2 Ratio)
The company split each existing share of face value ₹2 into two shares of face value ₹1. This stock split effectively doubled the number of shares held by each investor, while halving the market price per share. -
Bonus Share Issue (4:1 Ratio)
Alongside the split, the company also issued four bonus shares for every one share held (pre-split). This significantly increased the total number of shares in circulation.
The combined effect of the stock split and bonus issue results in each existing share becoming ten shares. For example, an investor holding 100 shares before these actions will now hold 1,000 shares post-adjustment.
💼 Why Did Bajaj Finance Do This?
According to the company’s statement, the purpose of these actions is to increase liquidity, make the stock more affordable to retail investors, and widen shareholder participation. At its pre-split price of around ₹9,300 per share, the stock was considered expensive for small investors. The post-action price is now adjusted to around ₹930, making it far more accessible.
A company spokesperson noted, “We believe these measures will democratize ownership and encourage long-term investment. The fundamentals of the company remain strong and unaffected by these changes.”
📈 Market Reaction and Shareholder Confusion
On June 16—the ex-date—many investors were alarmed when they saw Bajaj Finance’s stock appear to have “crashed” by over 90%. However, this was merely a mathematical adjustment, reflecting the revised price post-split and bonus issue.
Several retail investors also reported discrepancies in their demat accounts, with some platforms temporarily showing incorrect share quantities or values. Experts have clarified that the full credit of bonus shares will reflect in most accounts by June 27, 2025.
🧾 Record Date and Eligibility
The record date for both the stock split and bonus issue was June 16, 2025. All shareholders holding Bajaj Finance stock as of that date are eligible for the revised shares.
📊 What’s Next for the Stock?
Financial analysts remain optimistic about Bajaj Finance’s long-term prospects. The company has consistently delivered strong quarterly results, with healthy growth in loan disbursements, asset quality, and net profit. The recent actions are not expected to impact the core fundamentals.
Market experts believe the stock may witness increased trading volumes in the short term, driven by the lower entry price and renewed retail interest.
Ajay Patel, a senior analyst at Mumbai-based equity firm CapitalEdge, said, “These corporate actions are a classic signal of confidence from the management. It shows they are looking to reward shareholders while planning for broader market engagement.”
🧠 Investor Advice
While the stock split and bonus issue don’t directly increase a shareholder’s wealth (as the value gets redistributed), they are generally seen as positive signals of a company’s strength and future outlook.
Investors are advised to:
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Verify updated holdings with their brokers by June 27.
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Not panic over the reduced price—it’s adjusted as per the revised share structure.
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Focus on long-term fundamentals rather than short-term price fluctuations.
Conclusion
Bajaj Finance’s dual corporate actions—stock split and bonus issue—have reshaped its stock profile and made it more investor-friendly. As the market adapts to the changes, all eyes remain on how this strategic move plays out in terms of broader investor participation and future performance.
