Bajaj Finance shares opened trading on June 16. The shares opened at a new price of ₹956 from a previous price of ₹9,331, which seems to be a 90% decline. But this is not a real decline. This is just the change in the value of the shares due to the stock split and bonus issue. That is, the price of a share appears lower due to the increase in the number of shares. In reality, the shares have fallen by only about 0.7 percent, in line with the market situation.
This small decline occurred in the general market downturn. It followed the Nifty 50, a key stock index, which also started lower. Therefore, the apparent 90% decline in price is not a real loss, but an accounting change.
Bonus Issue and Stock Split Details
On April 29, Bajaj Finance made two important announcements. First, they announced bonus shares. Accordingly, a shareholder who has one share will be given four additional bonus shares. For example, if someone has one share, after the bonus announcement, he will have a total of five shares. This is an additional benefit for shareholders, as they get more shares without having to make any additional investment.
Secondly, they have also taken the step of splitting the shares. This share split will be done in the ratio of 1:2. That is, one share will be divided into two shares. This will reduce the price of one share, but the number of shares will double. In the previous method, Bajaj Finance had split the shares in the ratio of 1:5 in 2016. Both these measures increase the number of shares held by shareholders and make the shares easily available to small investors.
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What is the impact on shareholders
These measures provide very important benefits to shareholders. For example, if a shareholder holds 10 shares in Bajaj Finance on or before June 16, he will be given an additional 40 shares based on the bonus share announcement. Thus, he will have a total of 50 shares.
These 50 shares will double in the ratio of 1:2 due to the stock split, making his shares 100. Thus, even if the shareholder initially held 10 shares, he will have 100 shares after the bonus and stock split.
But the important thing is that new investors who buy shares on June 16 will not be eligible for these bonus shares or stock split, as their names will appear after the record date. Therefore, to avail these benefits, the shareholder must have been a shareholder before the record date.
Dividend of the Company
Bajaj Finance has declared a dividend of Rs. 56 per share for the financial year 2025. There are two types of dividend.
The first type is the final dividend. It is Rs. 44 per share. The record date for this final dividend was fixed as May 30. The amount will be paid to the shareholders on or about July 28.
The second type is the special interim dividend. It is Rs. 12 per share. The record date for this was fixed as May 9, and the amount will be paid to the shareholders on or about May 26.
With this, the eligible shareholders have received a total profit of Rs. 56 per share.
Bajaj Finance Q4FY25 Results (January-March)
Bajaj Finance announced its financial results for the January-March period of the financial year 2025 on April 29. In the quarter, the company has registered several important developments.
First, Net profit was ₹4,480 crore. This is 17 percent higher compared to the same quarter last year. Not only this, it also exceeded many experts’ estimates (expected to be ₹4,400 crore).
Total revenue rose to ₹18,457 crore, which reflects the company’s performance.
Net Interest Income was ₹9,807 crore, which is 22% higher than ₹8,013 crore last year. This is higher than the ₹9,660 crore forecast by Moneycontrol.
The company’s Assets Under Management (AUM) has increased by 26%. This is a good reflection of the increased demand for credit.
Furthermore, new loans have increased by 36%. This is also a very important indicator of the company’s business expansion.
In short, Bajaj Finance has shown strong growth in its financial performance in Q4FY25.
Conclusion
Although Bajaj Finance shares fell by 90% on June 16, it is not a real stock market crash. This is due to bonus shares and stock splits. The reason why the shares appear to have fallen by a large amount is because the value of the shares has been updated on an accounting basis.
The company’s performance has remained strong. Net profit, revenue, assets under management (AUM) and interest income have all increased. This clearly shows that the perception of a stock price crash is wrong. Investors need not worry about this.