Imagine waking up to find 10 times more shares of a company sitting in your Demat account – without paying a rupee more! That’s essentially what’s happening with Bajaj Finance this month. The company announced a 1:2 stock split and a 4:1 bonus share issue (both effective with a record date of June 16, 2025). In simple terms, each existing share will be split into two, and then for every share you hold, you’ll get four extra shares for free. So one original share (face value ₹2) becomes ten shares of face value ₹1.
Bajaj Finance hasn’t done a split or bonus in about 9 years – the last time was in 2016. Back then, a similar move (split+bonus) helped its share price skyrocket over the years (rising 700%+ since). Today, Bajaj Finance is a market favorite. As of early June 2025, its share price is around ₹9,600 (near the 52-week high of ~₹9,786) and up roughly 38% year-to-date. The company’s market cap is about ₹5.97 lakh crore , with a lofty P/E ratio in the high 30s and a strong return on equity (~20.35%). In short, this stock split and bonus issue is big news in the Bajaj Finance share price/stock news world – and investors are buzzing.
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Key dates you should know
- April 29, 2025 – Bajaj Finance’s board approved the 2:1 stock split and 4:1 bonus issue, along with announcing its March-quarter results .
- May 30, 2025 – Record date for final dividend. Bajaj Finance declared a ₹44/share dividend (2200% of face value) for FY2024-25 , to be paid to shareholders on record as of this date.
- June 16, 2025 (Monday) – Record date for stock split and bonus. If you hold Bajaj Finance shares by this date, you are eligible for the split and bonus shares .
- On or before June 27, 2025 – Bajaj Finance expects to complete the split and bonus issuance by this date (subject to approvals).
(In Indian corporate actions, the “record date” is the cutoff – you must be a shareholder on that date to get the shares or dividend.)
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What happens if you own Bajaj Finance shares
Good news: you’ll end up with more shares, for free! Here’s how it works: For every share you hold as of the record date, Bajaj Finance will split it into 2 shares. Then four bonus shares will be given for each of those. In effect, one original share (face value ₹2) turns into ten shares of ₹1.
- Total shares = 1 (your original) × 2 (split) × 5 (bonus total) = 10.
- You do not pay anything for the new bonus shares – they come from the company’s free reserves (about ₹497 crore are being used).
- Your total investment value remains roughly the same right after the action: although your share count multiplies by 10, the share price will adjust down accordingly.
For example: if you had 100 Bajaj Finance shares on the record date, after the split you’d have 200, and then you’d get 800 bonus shares (4×200). That means 1,000 shares total instead of 100 – a tenfold increase!
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Example breakdown of shareholding after bonus and split
To make it crystal clear, here’s a quick table showing how your share count would change:
| Shares (Pre-Split) | After 1:2 Split | Bonus Shares (4:1) | Total Shares |
| 10 | 20 | 80 | 100 |
| 50 | 100 | 400 | 500 |
| 100 | 200 | 800 | 1000 |
Table: How a 1:2 split + 4:1 bonus affects your share count. (E.g., 100 shares ⇒ 200 after split ⇒ +800 bonus ⇒ 1000 total.)
Why is Bajaj Finance doing this now?
There are a few likely reasons. First, Bajaj Finance is sending a strong signal to investors after a great quarter. Its March 2025 net profit jumped 19% year-on-year to ₹4,545.6 crore, and its loan book (AUM) grew about 26% to ₹4.17 lakh crore. The stock has been on a tear, hitting record highs recently. By splitting and issuing bonus shares, Bajaj Finance is rewarding long-term shareholders with extra shares and making the stock more affordable to new buyers.
Second, the high share price (~₹9,600) can be a barrier for some small investors. After a split and bonus, the theoretical post-action share price would be roughly one-tenth (around ₹960). A cheaper per-share price often makes a stock more accessible and liquid, potentially drawing in a broader investor base. The company itself notes that these moves should “increase liquidity” and boost its financial profile in the market.
One more point: Bajaj Finance hasn’t done a stock split or bonus in 9 years, so this is a rare, big event for the company. (Back in Sept 2016, they did a 1:5 split and 1:1 bonus, which set the stage for that 700%+ run-up we mentioned.)
Bajaj share price trend
The market has already reacted enthusiastically. When the record date was announced, Bajaj Finance shares spiked about 4–5% and hit a fresh 52-week high (~₹9,785.90). Its market cap briefly crossed ₹6 lakh crore. Year-to-date, the stock is up roughly 38% – well above many peers.
What investors should keep in mind
- Value doesn’t magically appear or disappear. After the split and bonus, you’ll own 10× more shares, but the overall value of your holding stays roughly the same immediately afterward (the share price will adjust to about one-tenth of today’s price). It’s like breaking a ₹100 note into ten ₹10 notes – your total cash is still ₹100.
- Check the ex-date. If you buy Bajaj Finance shares before the record date (June 16) you get the bonus, but buying on or after the ex-bonus date means you won’t. (Usually the ex-date is the trading day after the record date.) Plan your trades accordingly.
- Liquidity boost. With more shares outstanding and a lower per-share price, the stock may trade more actively. That can be good for getting in and out, but it can also mean short-term volatility around the split/bonus dates.
- Fundamentals still rule. These actions alone don’t increase your stake value. Bajaj Finance’s long-term outlook depends on its business – credit growth, asset quality, margins, etc. Keep an eye on those, not just the extra shares.
- Tax and dividends. Bonus shares are generally not taxable as capital gains on receipt. Note the ₹44 dividend: since its record date was May 30, that cash payout is separate and should hit accounts by late July.
- Valuations are high. Bajaj Finance trades at a high P/E (~37×) . This means expectations are baked in. Enjoy the extra shares, but be mindful that paying too much now might temper future returns.
Conclusion
In short, Bajaj Finance’s 2025 stock split and bonus issue is a big bonus for shareholders – literally. If you held shares on a record date, you’ll soon see your share count jump tenfold . It’s a way of rewarding investors without spending cash, and it brings the company back into the spotlight (first such move since 2016).
Remember: while you get more shares, the value of your investment doesn’t change right away. The market adjusts the stock price, so this is not “free money” in that sense – it’s more like having more pieces of the same pie. However, a lower share price post-split could attract new buyers and boost liquidity, which might help Bajaj Finance’s stock performance down the road.
All told, this is bullish share news – a sign of confidence from the company. Bajaj Finance remains one of India’s strongest NBFCs, and these moves underscore its solid financial health and growth prospects. For millennial and Gen Z investors, it’s another reminder: keep learning, stay invested, and watch how these corporate actions can work to your advantage (or at least add some excitement to your portfolio!).
