India's largest non-banking financial company (NBFC) Bajaj Finance is in the news these days for its next board meeting to be held on april 29, 2025. The company said on wednesday that its board of directors will consider issuing a special dividend, dividing the stock into several small pieces and issuing bonus shares on april 29, 2025.
The company gave this information to the stock market
In a regulatory filing to the BSE on april 23, the company said that the purpose of these proposals is to increase the value for the shareholders. Necessary approval will have to be taken for this. It further stated that the company will consider dividing shares with a face value of Rs 2 or doing a stock split. The proposal to issue bonus shares to existing shareholders without any cost will be considered and payment of lump sum dividend for the financial year 2025 will also be considered. These corporate actions will be implemented as per the Companies Act of 2013 and SEBI rules.
Bajaj Finance shares rise
Following this announcement, the company's shares rose by 4 per cent on thursday and reached a 52-week high of Rs 9,709.75 on the BSE. The company's shares have risen by 35 per cent so far this year and have given a return of 28 per cent last year. Stock split and bonus issue can increase liquidity, making shares more affordable. This can potentially attract more investors. Special dividend reflects the company's good financial health and its commitment to reward shareholders.
What is stock split and bonus issue?
In a stock split, one share is divided into several parts. This reduces the price of shares, makes it easier for investors to buy and increases liquidity in the stock. In a bonus issue, new shares are issued to the shareholders at no additional cost. This increases the number of shares, but the face value remains the same and the investors' holding value is also not affected.
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