Bajaj Finserv Stock Jumps Over 5% As Board To Consider Stock Split, Bonus Share This Week

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.

The stock of Bajaj Finserv today surged 5.65% as the board seeks to consider stock split and bonus share issuance this week. Check details below for more information:

1. Bajaj Finserv Board To Consider Stock Split, Bonus Share

The board of directors in the BSE filing stated, "With reference to the letter dated June 27, 2022, notifying the date of meeting of the Board of Directors, i.e. July 28, 2022, scheduled to consider and approve the unaudited financial results for the quarter ended June 30, 2022, Bajaj Finserv Ltd has now informed BSE that the Board of Directors will also consider a proposal for the below mentioned items at the said meeting -1. Sub-division of equity shares of the Company of face value of Rs. 5, and/or 2. Issue of fully-paid bonus equity shares to the members of the Company. The decision of the Board of Directors will be informed to the stock exchanges on July 28, 2022. The aforesaid proposal(s), if approved by the Board, will be subject to the approval of the shareholders."

Therefore, Bajaj Finserv board of directors will on Thursday consider the proposal for a stock split of company's equity shares and issuance of Bonus Share.

2. What Is bonus Shares And Stock Split?

Bonus Share: These are additional shares given to the existing shareholders without any extra cost, on the basis of the number of shares that a shareholder holds. Bonus shares are company's accumulated earnings which are not given out in the form of dividends, but are converted into bonus shares of free shares.

Stock Split: When a company increases its number of outstanding shares while reducing the price of each share without affecting the firm's overall market capitalisation.

3. Bajaj Finserv Stock Outlook

The current market price of the stock is Rs 13,330 apiece with a gain of 5.65% till 2:22 pm in today's trading. The 52-week high of the stock is Rs 19,319 apiece and 52-week low is Rs 10,777 apiece, respectively. The stock has given returns of 84% in 3 years and 168% in 5-years. The current market capitalization is Rs 212,305 crore. The PE of the stock is 473 and ROE is 9.71. It is a stock with high PE.