India-based non-banking financial company Bajaj Finance, headquartered in Maharashtra, will execute a 1:2 stock split and a 4:1 bonus issue. Investors holding shares before the June 16, 2025 record date will see a significant increase in the number of shares held—though the overall portfolio value remains unchanged.
Bajaj Finance Limited, a leading non-banking financial company (NBFC) in India headquartered in Pune, Maharashtra, has attracted significant investor attention following the announcement of two major corporate actions—a 1:2 stock split and a 4:1 bonus issue. These actions are set to take effect with a record date of June 16, 2025.
In an official exchange filing on April 29, 2025, Bajaj Finance stated that its board approved a stock split whereby each fully paid-up equity share of ₹2 will be subdivided into two fully paid-up equity shares of ₹1. Additionally, the board approved a 4:1 bonus share issue, granting four bonus shares for every one share held post-split.
Impact on Shareholders
To illustrate:
- An investor holding 100 shares of Bajaj Finance prior to the corporate actions will first see their holdings increase to 200 shares due to the 1:2 stock split.
- Following this, they will receive 800 bonus shares (200 shares × 4), resulting in a total holding of 1,000 shares.
It’s important to note that while the number of shares increases significantly, the total value of the holding remains the same due to a proportionate adjustment in share price.
This move comes after Bajaj Finance had earlier declared a final dividend of ₹44 per share, for which the record date was May 30, 2025.
These corporate actions highlight Bajaj Finance’s efforts to improve liquidity and make its stock more affordable to retail investors, without diluting the value of existing investments.
