Along with its results, the Bajaj Finance also announced a bonus issue of shares, a stock split, and a special dividend of ₹56 per share.
Bajaj Finance will be issuing four bonus shares for every one share held by shareholders. The company will also be splitting one equity share of face value of ₹2 each, into two shares with a face value of ₹1.
The company aims to complete the exercise of both the bonus issue and stock split by June 27 this year.
So what does this do to you if you are a Bajaj Finance shareholder?
Assuming the fact that a shareholder has 100 shares on Bajaj Finance as on the record date, the issue of four bonus shares for every one share would mean that a shareholder would receive 400 shares for the 100 shares owned, taking the total count to 500 shares.
Additionally, the stock split will mean that one share will turn into two shares, meaning that the 500 shares post the bonus allotment, will turn into 1,000 shares.
Therefore, a shareholder who has 100 shares of Bajaj Finance as on the record date, will have 1,000 shares at the end of the exercise.
Shares of Bajaj Finance are trading 5.8% lower on Wednesday at ₹8,581. Technical analyst Mitessh Thakkar said that he would wait for levels of ₹8,250 – ₹8,300 to re-enter the stock after the run-up that the stock had seen up to levels of ₹9,600.
