Bajaj Finance Stock Adjustments and Financial Performance
On June 16, Bajaj Finance shares resumed trading following adjustments for a stock split and bonus issue. The shares opened at Rs 956 each, marking nearly a 90 percent reduction from the previous closing price of Rs 9,331. Accounting for these adjustments, the shares initially dropped by 0.7 percent in early trading sessions, aligning with the broader market's downturn and the Nifty 50's sluggish start. Earlier in April, the leading non-banking financial company (NBFC) announced a bonus share issuance in a 4:1 ratio alongside a stock split in a 1:2 ratio. These moves were aimed at enhancing liquidity and accessibility for investors.
In late April, Bajaj Finance declared a significant corporate action plan involving both a bonus issue and a stock split. Under this plan, shareholders would receive four additional shares for every one share they owned prior to the adjustment. Furthermore, the company decided on a stock split that doubled the number of shares held by each investor. This marks the second stock split since 2016, when the company had previously conducted a split in a 1:5 ratio. For instance, an investor owning ten shares as of the record date of June 16 would end up with fifty shares after the bonus issuance and subsequently one hundred shares following the stock split.
Additionally, Bajaj Finance committed to rewarding its shareholders through dividends. The firm announced a final dividend of Rs 44 per equity share and a special dividend of Rs 12 per share, totaling Rs 56 per share for the fiscal year ending in 2025. The record date for determining eligibility for the final dividend was set for May 30, with payments scheduled around July 28. Meanwhile, the special interim dividend's record date was earlier established on May 9, with payouts expected by May 26.
The company also reported robust financial results for the January-March quarter of FY25. Net profit surged by 17 percent year-over-year, reaching Rs 4,480 crore, surpassing the estimated Rs 4,400 crore projected by five brokerages surveyed by Moneycontrol. Operational revenue climbed to Rs 18,457 crore during the same period. Strong credit demand contributed to a 26 percent growth in assets under management, while new loan bookings increased by 36 percent compared to the previous year. Moreover, net interest income rose by 22 percent in Q4FY25, amounting to Rs 9,807 crore, exceeding Moneycontrol's poll estimate of Rs 9,660 crore.
Bajaj Finance's strategic initiatives reflect the company's commitment to enhancing shareholder value while maintaining strong operational performance. The recent stock adjustments not only improve liquidity but also underscore the firm's financial health and future prospects. Investors can anticipate continued benefits from both capital appreciation and regular dividend payouts, reinforcing Bajaj Finance's position as a leading player in India's financial services sector.