Announcing its financial results for the first quarter ended June 2022, Bajaj Finserv said on Thursday that its board has also approved the proposal for a stock split or sub-division of equity shares in the ratio of 1:5 and with He has given his approval for the same. Issue of bonus shares in the ratio of 1:1. Shares of Bajaj Finserv jump over 9% on BSE 14,511 each.
“The Board has approved sub-division of each existing equity share of face value” In five equity shares of face value of Rs.5/- 1/- Fully paid. It also approved issuance of one bonus equity share of face value 1/- for every 1 fully paid-up equity share 1/-,” the financial services company announced in an exchange filing today.
For Q1FY23, Bajaj FinservConsolidated net profit of Rs. 1,309 crore as compared to 833 crore in the same quarter last year. Meanwhile, its revenue rose nearly 14%. 15,888 crore vs. 13,949 crore in the year-ago quarter.
a stock split Increases the number of outstanding shares by issuing more shares to existing shareholders. A stock split reduces the market value of individual shares, however, the market capitalization of the company does not change.
A company engages in a stock split decision to make its stock more affordable if its price level is too high, which will increase the liquidity in the stock. During this, bonus share Fully paid-up shares are additional shares issued by a company to its existing shareholders.
Shares of Bajaj Finserv have fallen over 15% so far in 2022 (year-to-date), while they are up nearly 4% in the one-year period. Bajaj Finserv focuses on lending, asset management, wealth management and insurance services.
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