Bajaj Finance Slides 90% Post Bonus, Split Adjustment; No Cause for Alarm

Bajaj Finance shares began trading on June 16 at ₹956 apiece, sharply down from their previous close of ₹9,331, leading to a dramatic 90% drop on paper. However, the fall is purely cosmetic, reflecting the adjustment for a 4:1 bonus share issue and a 1:2 stock split, and has no impact on the overall value of shareholders’ holdings. This technical correction comes after the company announced multiple corporate actions and a strong earnings report for Q4 FY25.

Highlights:

• Bajaj Finance stock opened at ₹956 after 90% technical fall due to bonus and split.

• Adjustments follow a 4:1 bonus issue and 1:2 stock split.

• No change in shareholder wealth; only share count and face value are adjusted.

• Eligible shareholders will now hold 10x more shares post-adjustment.

Read more : HDB Financial Services Set to Launch Rs.12,500 Crore IPO by June-End Valuation Seen at ₹62,000 Crore

Understanding the Bonus Issue and Stock Split Mechanism

On April 29, Bajaj Finance announced a 4:1 bonus issue, meaning shareholders would receive four additional shares for every share they held. This was followed by a 1:2 stock split, which further doubled the number of shares by reducing the face value per share from ₹2 to ₹1.

A shareholder holding 10 shares as on record date (June 16) would first receive 40 bonus shares, bringing the total to 50. After the stock split, the same 50 shares would be split into 100, resulting in 10 times the original number of shares.

Despite the massive drop in the share price post-adjustment, the market capitalization remains unchanged, and the intrinsic value of investments is intact. The per-share dividend and earnings will adjust proportionally.

Highlights:

• Bonus issue: 4 bonus shares for every 1 share held.

• Stock split: 1 share split into 2, changing face value from ₹2 to ₹1.

• Post-adjustment, shareholder with 10 shares now owns 100 shares.

• Adjusted share price reflects increased share count; market cap unchanged.

Dividend Boost Alongside Bonus and Split

In addition to the corporate actions, Bajaj Finance also declared a generous dividend payout totaling ₹56 per share in FY25. This includes:

• Final dividend of ₹44 per share (record date: May 30, payout on or around July 28)

• Special interim dividend of ₹12 per share (record date: May 9, payout on or around May 26)

Post-adjustment, these dividend amounts will be recalculated per new share, ensuring fair distribution across the expanded share base.

Highlights:

• ₹56 total dividend announced for FY25: ₹44 final + ₹12 special.

• Record dates: May 9 (special), May 30 (final); payouts in May and July.

• Post-adjustment dividends will be proportionally adjusted per new share.

Q4 FY25 Results: Strong Financials and Growth Momentum

The share adjustment comes shortly after Bajaj Finance posted a 17% year-on-year jump in net profit to ₹4,480 crore for Q4 FY25, beating street estimates. Key metrics showed strong operational performance:

• Revenue from operations surged to ₹18,457 crore.

• Net interest income (NII) increased 22% YoY to ₹9,807 crore.

• Assets under management (AUM) grew 26% YoY, reflecting strong credit demand.

• New loan bookings rose 36% YoY, further supporting growth visibility.

This solid earnings performance reinforces the company’s leadership in the NBFC space and validates the rationale behind the bonus and split—to enhance liquidity, improve affordability, and attract retail investors.

Highlights:

• Net profit: ₹4,480 crore in Q4FY25, up 17% YoY.

• NII: ₹9,807 crore, up 22% YoY; Revenue: ₹18,457 crore.

• AUM growth: 26%; New loan bookings: up 36% YoY.

• Earnings strength justifies bonus-split move and long-term optimism.