Bajaj Finserv will split this week. 10 key points

Last week, on Friday, Bajaj Finserv shares closed Fall of up to 17,202.65 each 178.80 or 1.03%. of the company Market hat is around 2,74,006.47 crore.

In a month (from August 10 to September 9), the shares have gained about 10 per cent. In the month of August, shares of Bajaj Finserv were among the best performers on the Sensex and Nifty 50, each up nearly 13%.

Here are 10 key points from Bajaj Finserv’s stock split

1. NBFC will split each existing equity share of face value 5 each is divided into five equity shares, the face value of which is Rs 1 per equity share fully paid-up. The stock split ratio is 5:1.

2. Bajaj Finserv has set September 14 as the record date for determining the eligible shareholders for the stock split benefit.

3. Thus, the date of the ex-stock split is September 13. In general terms, the ex-split is the date on which a stock is trading without the benefit of corporate action, in this case, a stock split. The pre-partition date is a day or two before the record date.

4. On its website, ICICI Direct said that if you buy shares of Bajaj Finserv on September 12, then those shares should be credited to your demat account on September 14 (i.e. the record date), from which you can claim bonus and splits. will be eligible.

5. Among the many benefits of a stock split is that these shares become more affordable for both existing and new investors. Also, the move boosts the liquidity of the listed company. Through the stock split, Bajaj Finserv plans to encourage small potential shareholders to participate in the future of the company.

6. Arguing the stock split, Bajaj Finserv last month said that the company and its subsidiaries have grown significantly in terms of turnover and performance over the years. This is reflected in the company’s share price, which touched a peak of Rs. 19,325 in October 2021. Since then the price has been hovering around 12,200. At present, retail/individual shareholders comprise 98% of the total number of shareholders holding approximately 17.52% of the paid-up value of the shares. Among its competitors, 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 take part in the company’s future.

7. In a stock split, the listed company increases the number of shares outstanding by issuing more shares to the eligible shareholders. A stock split also reduces the market value of individual shares, however, it does not result in changing the market capitalization of the company. In the case of Bajaj Finserv, the eligible shareholder will receive 5 shares on one of their existing shares, thereby increasing the number of Bajaj Finserv shares in their portfolio. The price of Bajaj Finserv shares will also become affordable and affordable for both new and existing investors.

7. As per market guidelines, a company can fix a record date for corporate actions such as dividends, stock splits and bonus issues only after obtaining approval from the shareholders. Bajaj Finserv received approval from the members of the company for splitting of stock through postal ballot on 2nd September.

9. As per the shareholding pattern, as on June 30, 2022, Bajaj Finserv has 2,99,380 shareholders, including 15,91,37,444 fully paid-up equity shares.

10. The company plans to complete the stock split process on or before September 26, according to regulatory filings. However, the company had also informed the exchanges that “14,417 equity shares of face value 5 Rights Rights have been kept in abeyance. If any claim is received and processed by the company, the pre and post issued, paid up and subscribed capital shall stand converted to that effect.”

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