Shares of Bajaj Finserv will trade ex-split and ex-bonus next week as the company has decided to determine the members, eligible for sub-division of existing equity shares and issuance ‘record date’ on Wednesday, 14 September 2022. as determined. Bonus equity shares of the company.
Announcing its Q1FY23 results, Bajaj Finserv had 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 has given its approval for issue of bonus shares in the ratio of 1:1 .
Explaining the rationale behind the stock split and issue of bonus shares, Bajaj Finserv had said that the company and its subsidiaries have grown significantly in terms of business and performance over the years. This is reflected in the share price of the company, which touched the peak of 19,325 in October 2021.
Among its peers, the company’s share price is one of the highest as well as having one of the smallest capital bases. “As the stock price rises further, it will be difficult for small potential shareholders to participate in the future of the company. Keeping in mind the spirit of inclusion and rewarding the shareholders. The Board of Directors, in its meeting held today, said the said Approved and recommended corporate actions,” Bajaj Finserv said.
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 are up about one percent so far in 2022 (year-to-date), while they’re down about 2% in the one-year period. Bajaj Finserv focuses on lending, asset management, wealth management and insurance services.
The company was formed in 2007 to further the group’s interest in financial services as a result of its separation from Bajaj Auto Limited. Bajaj Finserv is the holding company of the Bajaj Group’s financial services businesses.
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