Bajaj Finserv said that its Board has also approved the proposal for share split or sub-division of equity shares in the ratio of 1:5 and also gave its approval for issue of bonus shares in the ratio of 1:1. has given. “The Board has approved the sub-division of each existing equity share of face value of Rs.1 each into five equity shares of face value of Rs. The financial services company made the announcement in an exchange filing today.
The company would be required to amend the capital clause of the company’s Memorandum of Association, subject to the approval of the shareholders to be obtained by postal ballot, it said in a regulatory filing.
For Q1FY23, Bajaj Finserv’s consolidated net profit grew nearly 57 per cent to Rs 1,309 crore as compared to Rs 833 crore in the same quarter last year. The profit includes unrealized MTM loss of insurance subsidiaries of Rs 283 crore as against profit of Rs 25 crore on year-on-year basis.
Bajaj Finserv is the holding company for various financial services businesses under the Bajaj Group.
Bajaj Finserv Stock Split
A stock split increases the number of shares outstanding 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. Meanwhile, bonus shares are fully paid-up additional shares issued by a company to its existing shareholders.
The Company intends to complete the necessary corporate action on or before 26 September 2022, subject to necessary approvals.
“The Company and its subsidiaries have grown significantly in terms of business and performance over the years. Among its peers, the Company has one of the highest share values along with having one of the smallest capital bases.
stock price history
The jump of up to 10 per cent in Bajaj Finserv came after the board approved a 1:1 bonus issue and a 1:5 stock split.
Shares of Bajaj Finserv have fallen more than 15 per cent in 2022 (year-to-date) so far, while they are up nearly 4 per cent in the one-year period. Bajaj Finserv focuses on lending, asset management, wealth management and insurance services.
The company was formed in 2007 as a result of separation from Bajaj auto Limited to further the group’s interest in financial services. Bajaj Finserv is the holding company of the Bajaj Group’s financial services businesses.
read all breaking news And today’s fresh news Here