New Delhi: In a double bonanza for investors, has announced stock split along with issuance of bonus shares for its shareholders as it announced its June 2022 quarter results.
The company’s board has approved the sub-division of equity shares in 1:5 ratio, which means each share of Bajaj Finserv having a face value of Rs 5 will split into five shares with a face value of Re 1 each.
The company has also announced issuance of bonus shares with a face value of Re 1 each for every full paid-up equity share of Re 1. This means that the bonus shares will be issued after the stock split.
The company will be required to amend the capital clause of the memorandum of association of the company, subject to approval of the shareholders to be obtained by postal ballot, it said in a regulatory filing.
Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group.
Following the development, shares of Bajaj Finserv rallied more than 9 per cent to Rs 14,545 on Thursday before trading at Rs 14506.75 12.20 noon. The scrip had settled at Rs 13,303.15 on Wednesday.
Post stock split, authorized share capital of the company will increase to 1 billion equity shares with a face value of Re 1 each. Its paid up and subscribed shares capital will rise to 9.64 crore shares, with the same face value.
Ultimately, the authorised capital will increase to 2 billion equity shares with a face value of Re 1 each, post the bonus shares issue. Total paid up and subscribed capital will be increased to 1.59 billion shares with a face value of Re 1 each.
The company intends to complete the necessary corporate action on or before 26 September 2022, subject to necessary approvals.
“The company and its subsidiaries have grown significantly, in terms of business and performance, over the years. Among its peers, the share price of the company is one of the highest while having one of the smallest capital bases.
As and when the stock price rises further. it will be increasingly difficult for small potential shareholders to partake in the company’s future,” said Bajaj Finserv in its regulatory filing.
Keeping with the spirit of inclusion and in order to reward the shareholders. the board of directors at its meeting approved and recommended the said corporate actions, it added.
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