Bajaj Finserv Shares Rise 6% as the Stock Trades Ex-Date; What Investors Need to Know

Bajaj Finserv Trades Ex-Split: Shares of Bajaj Finserv were the top Sensex and Nifty gainers on Tuesday, September 13, after the stock turned ex-date for 1:5 stock split and 1:1 bonus share. The stock-adjusted 52-week high now stands at Rs 1,932, recorded on October 19, 2021. The scrip rallied 6 per cent to Rs 1,821 on the BSE in Tuesday’s intra-day trade. Company on July 28 this year said its board of directors announced a stock split and bonus issue of equity shares. The Board of the company cleared the sub-division of equity shares in a 1:5 ratio.

Why the Stock Split?

A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. A stock split decreases the market price of the individual shares, however, does not result in changing the market capitalization of the company.

A company engages in a stock split decision to make its stock more affordable if its price levels are very high, which thus would lead to an increase in liquidity in the stock. Meanwhile, bonus shares are fully paid for additional shares issued by a company to its existing shareholders.

Highlighting the rationale behind the split and issue of bonus shares, the management had said that the company and subsidiaries have grown significantly, in terms of business and performance over the years. “This is reflected in the share price of the company, which touched peak of Rs 19,325 in October 2021. Since then, the price has hovered around Rs 12,200,” it said.

Eligibility

On its website, ICICI Direct stated that if you buy the shares of Bajaj Finserv on September 12 those shares should be credited to your Demat account on September 14 (i.e. the record date) thus making you eligible for the bonus and the split.

As of June 30, 2022, according to the shareholding pattern, Bajaj Finserv has 2,99,380 shareholders with 15,91,37,444 fully paid-up equity shares. The company plans to complete the stock split process on or before September 26, as per the regulatory filing. However, the company had also informed exchanges that “14,417 equity shares of the face value of Rs 5 rights entitlements are kept in abeyance. In case any claim is received and processes by the Company, pre and post-issued, paid-up, and subscribed capital will undergo change to that effect.”

Stocks Price History

On Nifty, stock of Bajaj Finserv rose 7.64 per cent to Rs 1,844. It was the top gainer on Nifty. Bajaj Finserv shares opened with a gain of 2.4 per cent at Rs 1,757 on BSE today. Bajaj Finserv stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

The stock has gained 5.79 per cent in one year and climbed 9.27 per cent in 2022. In a month, the Bajaj Finserv stock has climbed 13.56 per cent. Total 4.13 lakh shares of the firm changed hands amounting to a turnover of Rs 74.64 crore on BSE.

Market cap of the firm rose to Rs 2.85 lakh crore on BSE. The stock hit a 52-week high of Rs 1,932 on October 19, 2021 and a 52 week low of Rs 1,077.70 on July 1, 2022.

Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj Group. The company is engaged in the business of promoting financial services such as finance, insurance, and wealth management, through its investments in subsidiaries and joint ventures. It is also engaged in the business of generating power through wind turbines, a renewable source of energy. Its segments include life insurance, general insurance, windmill, retail financing, and investments and others.

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