Bajaj Finserv gains as consumer finance firm fixes record date for stock split and bonus issue

"With reference to our letter dated 28 July 2022 wherein, we had intimated, the recommendation of the Board subject to the approval of shareholders: a) sub-division of each existing equity share of the face value of Rs. 5/ (Rupees Five only) into Five (5) equity shares of the face value of Rs. 1/- (Rupee one only) fully paid-up; and the issue of one bonus equity shares of the face value of Rs. 1/- (Rupees one only) for every 1 (one) fully paid-up equity share of Rs. 1/- (Rupees one only) of the Company." the company said in a regulatory filing.

According to the management, the company and its subsidiaries have grown greatly in terms of business and performance over the years, forming the justification for the split and the issuance of bonus shares.

"The company's share price, which peaked at Rs 19,325 in October 2021, reflects this. The cost has since stayed at Rs. 12,200,” the company said.

In the letter released in July, Bajaj Finserv further added that it will become more challenging for small potential shareholders to participate in the company's development as and when the stock price rises further. The board of directors accepted and recommended the mentioned corporate initiatives in the interest of inclusivity and shareholder return.

The main business of Bajaj Finserv is marketing financial services like investing, insurance, and brokerage. It is a financial conglomerate having interests in the financing, life, and general insurance sectors (Bajaj Finance, Bajaj Life, and Bajaj General Insurance).

In the past three months, Bajaj Finserv has rewarded investors with a return of over 30 percent. The stock hit a one-month high of Rs 17,145 on August 17, 2022.