Bajaj Finserv may split stocks and issue bonus shares this Week
Bajaj Finserv told the markets that its board would meet this week on Thursday, November 08, 2022 to discuss the idea of subdividing equity shares or stock splitting as well as the issuance of bonus shares, as well as its performance for the first quarter ended June 2022.
In Tuesday’s trades on the BSE, shares of Bajaj Finserv rose by more than 4 percent, reaching $13,181 per share.
“The board of directors meeting, which is set for November 08, 2022, is intended to review and approve the unaudited financial statements for the period ending June 30, 2022.
Please be aware that at the aforementioned meeting, the board of directors will also consider a proposal for the following items:
1. Subdivision of the company’s equity shares with a face value of Rs. 5, and/or
2. Issuance of fully-paid bonus equity shares to the Company’s members, according to Bajaj Finserv.
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On November 08, 2022, the stock exchanges will be notified of the board of directors’ decision.
If accepted by the board, the aforementioned proposal(s) will next need to be approved by the shareholders, the financial services business stated.
By distributing extra shares to the existing owners, a stock split increases the number of shares that are outstanding.
Although a stock split lowers the share price on an individual basis, it has no impact on the company’s market capitalization.
If a company’s stock price levels are very high, it may decide to split its shares, which would boost the stock’s liquidity and make it more accessible to investors.
Bonus shares, on the other hand, are extra, fully paid shares that a firm issues to its current owners.
The share price of Bajaj Finserv has decreased by more than 22% so far in 2022 (year to date), compared to a 2% fall over the previous year.
The primary business lines for Bajaj Finserv include loan, asset management, wealth management, and insurance.
The business was formed in 2007 when Bajaj Auto Limited demerged to boost the group’s financial services interests.
The Bajaj Group’s operations that provide financial services are housed under Bajaj Finserv.
About Bajaj Finserv
With its headquarters in Pune, Bajaj Finserv Limited provides non-bank financial services in India. Lending, asset management, wealth management, and insurance are its main areas of concentration.
In connection with the recently completed demerger from Bajaj Auto Limited, which was authorised by the High Court of Judicature at Bombay by its ruling dated 18 December 2007, the financial services and wind energy companies were transferred to Bajaj Finserv Limited (BFS).
It’s a financial conglomerate with holdings in general insurance, Bajaj Life, and finance (Bajaj General Insurance).
Bajaj Holdings was registered as an NBFC with the Reserve Bank of India on October 29, 2009. (RBI).
According to RBI regulations, the organisation is categorised as a Systemically Important Non-Deposit-Taking NBFC. [Reference required]
The firm operates consumer credit operations, life insurance, and general insurance; it has over 20,154 workers across 1,409 sites.
With a 65.2 MW installed capacity for wind energy generating, it also engages in financial services.