Bajaj Finserv Announces Bonus Share, Stock Split, Big Jump In Stock

Bajaj Finserv came into existence in April 2007 as a result of its demerger of Bajaj Auto Limited to further the Group's interest in financial services. The demerger enabled Bajaj Finserv to independently run the core business of lending, protection, and savings. Bajaj Finserv Limited is the holding company for the businesses dealing with financial services of the Bajaj Group, according to the official website of the company.

Today is a big day for Bajaj Finserv as the stock jumped 10.14% to end at Rs 14,652 apiece. Check reason below for this sharp rise in the stock of Bajaj Finserv:

1. Bajaj Finserv Ltd Board Approves Bonus Share

The board of directors of Bajaj Finserv stated in the BSE filing today, "In terms of the provisions of Regulation 30 (read with Part A of Schedule Ill) and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015, as amended, this is to inform that Board at its Meeting held today, i.e., 28 July 2022 has approved to issue of One bonus equity shares of face value of Rs. 1/- (Rupees one only) for every 1 (one) fully paid-up equity share of Rs. 1/- (Rupees one only).

2. Bajaj Finserv Ltd Board Gives Nod To Stock Split

And, along with bonus share issuance, the board of directors of the company also approved stock split with the following statement submitted to the BSE, "In terms of the provisions of Regulation 30 (read with Part A of Schedule Ill) and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015, as amended, this is to inform that Board at its Meeting held today, i.e., 28 July 2022 has approved the sub-division of each existing equity share of face value of Rs. 5/- (Rupees Five only) into Five (5) equity shares of face value of Rs. 1/- (Rupee One Only) fully paid- up." It implies that each share of Bajaj Finserv with the Face Value of Rs 5 will not split into 5 shares with a new Face Value of Rs 1 each.

When a stock split takes place, the company increases its number of outstanding shares while reducing the price of each share without affecting the firm's overall market capitalisation. Meanwhile, bonus shares are the additional shares given to the existing shareholders without any extra cost, on the basis of the number of shares that a shareholder holds.

3. Bajaj Finserv Stock Outlook

The shares of Bajaj have gained 10.14% to close at Rs 14,652 on BSE in today's intra-day trading soon after the company has given nod to bonus share and stock split issue. In just 7 days only, the stock of Bajaj Finserv gained 15% and in the entire month of July, the stock has gained 29%. The stock has given a return of 197% in the last 5 years. The 52-week high of the stock is 19,319 and 52-week low is Rs 10,777.

4. About Bajaj Finserv

Bajaj Finserv Ltd is a Core Investment Company (CIC) under RBI Regulations 2020 and the holding company for the several financial services businesses under the Bajaj Group. Its vision is to offer financial solutions for the retail and SME customers through their life cycle- asset acquisition and lifestyle enhancement through financing, asset protection through insurance, family protection through life and health insurance , healthcare needs for the family, and saving products, among others. The market capitalization is Rs 233, 219 crore.