Bajaj Finserv Shares Rise As Board To Consider Stock Split and Issuance of Bonus Shares

Bajaj Finserv Stock Split: Bajaj Finserv shares rose over 3 per cent in Tuesday’s early trade after the company announced that it will consider a stock split and bonus issue of shares this week. Bajaj Finserv’s board will consider the proposal of a sub-division of shares of face value Rs 5 each. It will also consider the proposal of the issue of fully-paid bonus shares to members of the company.

Earlier on June 27, Bajaj Finserv had announced that a meeting of the board of directors of the Company will be held on Thursday, July 28, 2022, inter-alia, to consider the unaudited financial results for the quarter ending 30 June 2022 (Q1FY23).

Bajaj Finserv: What is a Stock Split?

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

The main stock split benefit is that the shares of a company generally see increased liquidity. Since shares have now become more accessible to retail investors, more people would show increased demand for it, which can increase liquidity in the counter. Buying and selling shares will be far easier after a stock split.

Stock Price History

Following the update, the stock reached its day’s high of Rs 13,096.80. At 10:15 am, the scrip traded at Rs 12,829.05, around 1.73 per cent above its previous close of Rs 12,610. The share touched a 52-week high of Rs 19,319.95 and a 52-week low of Rs 10,777.00 on October 19, 2021, and July 1, 2022 respectively.

In the past one month, Bajaj Finserv has outperformed the market by gaining 12 per cent, as compared to 5.3 per cent rise in the S&P BSE Sensex. However, ovet the last three months, the stock has underperformed the market by falling 15 per cent, as against 2 per cent decline in the benchmark index.

Financials

In Q1FY23, Bajaj Finserv’s consolidated revenue is expected to grow at 25.8 per cent year-on-year (YoY) to Rs 17,542 crore led by pick up in lending business, and coupled with continued healthy traction in premium accretion in insurance businesses.

Healthy growth in assets under management (AUM) is expected to boost operational performance. Focus on individual business in life insurance & continued revival in health & credit protect business in general insurance may support premium accretion. Moderation in slippages (in lending business), claims (in insurance business) and base effect is expected to result in 61 per cent YoY growth in earnings at Rs 1,346 crore, ICICI Securities said in a result preview.

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