Bajaj Finance Shares Hit Life High As Board Mulls Stock Split, Bonus Issue

The shares of Bajaj Finance Ltd. rose to hit a new life high after it announced that the board of directors will consider proposals for a stock split and bonus issue of shares during a meeting on April 29.

The board will also review fourth-quarter and financial year 2025 financial results, along with a potential dividend, as per a stock exchange filing on Wednesday. Each share currently has a face value of Rs 2.

India’s largest non-banking financial company last announced a bonus issue in September 2016, in a 1:1 ratio. It paid a final dividend of Rs 36 per share in June 2024.

Led by Rajeev Jain, the company holds a market capitalisation of nearly Rs 5.8 lakh crore. Jain was recently elevated from managing director to vice chairperson for a three-year term.

Anup Kumar Saha assumed the role of managing director on April 1, with his tenure set to run through March 31, 2028.

Rajeev Jain's continuity in Bajaj Finance will make "investment thesis for Bajaj Finance one of the strongest and clearest" among large-cap private financials, according to Morgan Stanley.

The brokerage had also increased its target price to Rs 10,500 from Rs 9,300, while maintaining its 'overweight' rating.

The shares of Bajaj Finance rose as much as 3.61% to Rs 9,660 apiece to hit a fresh life high. It pared gains to trade 1.56% higher at Rs 9,471.50 apiece, as of 9:16 a.m. This compares to a 0.49% advance in the NSE Nifty 50 Index.

It has risen 28.72% in the last 12 months and 38.41% year-to-date. Total traded volume so far in the day stood at 0.13 times its 30-day average. The relative strength index was at 60.79.

Out of the 38 analysts tracking the company, 28 have a 'buy' rating on the stock, five recommend 'hold' and as many suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 2.7%.