Bajaj Finance Share Price: Bajaj Finance shares left many investors startled on Monday morning, displaying what appeared to be a 90 per cent drop in value. But here’s the truth, this is not a crash. The Nifty heavyweight went ex-bonus and ex-split today, and the value change is purely notional. The corporate actions are aimed at improving stock liquidity and making the stock more affordable for retail investors.
Bajaj Finance bonus and stock split: What happened?
Bajaj Finance recently announced two shareholder-friendly measures a 4:1 bonus issue and a 1:2 stock split. These were approved by the company to enhance participation and improve stock liquidity on the bourses.
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Bonus shares: For every 1 share held, shareholders will receive 4 bonus shares.
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Stock split: Each share with a face value of Rs 2 has been split into two shares with a face value of Re 1.
What does this mean for investors?
If you held 1 share of Bajaj Finance:
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After the 4:1 bonus, you receive 4 extra shares – Total = 5 shares
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Each of these 5 shares is now split into 2 – 5 × 2 = 10 shares
So, your 1 share becomes 10, but the total investment value remains the same as the stock price is adjusted accordingly.
Share price adjustment
Since both the bonus and split increase the number of outstanding shares, the share price adjusts downward to reflect the expanded capital. The momentary fall in your portfolio’s value is a technical adjustment, not a loss. This is a standard practice for corporate actions.
When will the shares reflect in your demat?
Bajaj Finance has stated that the corporate action will be completed by June 27, after which the updated shareholding will be visible in investors’ demat accounts. So, if you had 1 share earlier, you’ll see 10 shares by that date.
Market outlook
Stock splits and bonus issues are often used by large-cap companies to improve retail participation by reducing the stock’s per-unit price. It increases liquidity without affecting the overall market capitalisation or your wealth.
If your portfolio looks like it took a 90 per cent hit today because of Bajaj Finance, don’t panic. Your money is safe, and your holdings are only being restructured. Keep an eye on your demat on June 27 for the final credit.
