In a significant development for investors, Bajaj Finance has announced a major corporate action package, including a stock split, a 4:1 bonus issue, and a record-breaking dividend payout. These changes are expected to enhance the stock's affordability, trading liquidity, and overall investor sentiment.
4:1 Bonus Share Issue
Bajaj Finance will issue four bonus shares for every one share held, subject to shareholder approval via postal ballot. This marks the company’s first bonus share issuance in nine years, with the last one occurring in 2016 at a 1:1 ratio.
1:2 Stock Split
The board has also approved a 1:2 stock split, where each existing share of ₹2 face value will be split into two shares of ₹1 each. This move follows the 2016 stock split when one share of ₹10 was divided into five shares of ₹2.
Total Dividend of ₹56 Per Share
Alongside these announcements, Bajaj Finance declared a final dividend of ₹44 per share, the highest in its history. In addition, a special dividend of ₹12 per share was approved, stemming from the one-time gain realized by selling a stake in its subsidiary, Bajaj Housing Finance, through an IPO. The total dividend payout now stands at ₹56 per share, surpassing last year’s record of ₹36.
Timeline and Impact
The company stated that the execution of the bajaj finance stock split bonus dividend actions will be completed on or before June 27, 2025. These decisions reflect the company's strong financial performance and commitment to enhancing shareholder value.
On the day of the announcement, Bajaj Finance shares closed at ₹9,105, hovering close to their all-time high of ₹9,660.
Conclusion
With the announcement of the bajaj finance stock split bonus dividend, the company has signaled strong growth and rewarding returns for its investors. These strategic corporate actions are poised to boost market participation and long-term confidence in the Bajaj Finance stock.