Home / Markets / Stock Markets /  Bajaj Finserv to consider stock split, bonus shares issue proposal this week

Bajaj Finserv informed the exchanges that its board will meet this week on Thursday July 28, 2022 to consider the proposal of sub division of equity shares or stock split as well as issue of bonus shares, along with considering its results for the first quarter ended June 2022. Shares of Bajaj Finserv surged more than 4% to 13,181 apiece on the BSE in Tuesday's deals.

“The meeting of the board of directors, i.e. 28 July 2022, scheduled to consider and approve the unaudited financial results for the quarter ended 30 June 2022. Please be informed that the board of directors will also consider a proposal for the below mentioned items at the said meeting – 1. Sub-division of equity shares of the company of face value of Rs. 5, and/or 2. Issue of fully-paid bonus equity shares to the members of the Company," Bajaj Finserv said in the release.

The decision of the board of directors will be informed to the stock exchanges on 28 July 2022. The aforesaid proposal(s), if approved by the board, will be subject to the approval of the shareholders, the Financial services company added.

A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. 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 stock split decision to make its stock more affordable if its price levels are very high, which in thus would lead to increase in liquidity in the stock. Meanwhile, bonus shares are fully paid additional shares issued by a company to its existing shareholders.

Bajaj Finserv shares have declined more than 22% in 2022 (year-to-date) so far whereas its down 2% in a year's period. Bajaj Finserv is focused on lending, asset management, wealth management and insurance services.

The company was formed in 2007 as a result of its demerger from Bajaj Auto Limited to further the group's interest in financial services. Bajaj Finserv is the holding company for the businesses dealing with financial services of the Bajaj Group.

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