Bajaj Finance Ltd. on Tuesday announced it will split each stock into two and also issue bonus shares to over 70 lakh shareholders.
The board considered and recommended a subdivision of one fully paid-up equity share of a face value of Rs 2 each into two equity shares of a face value of Re 1 each, according to an exchange filing.
The board also cleared the issue of bonus equity shares in the ratio of 4:1. Each shareholder will get four bonus shares for every one held as of the record date, subject to the approval of shareholders through postal ballot.
The last bonus issue from India's largest non-banking financial company was in September 2016 in the 1:1 ratio.
Bajaj Finance board also recommended dividend of Rs 56 per share at a face value of Rs 2 each for the financial year ended March 31, 2025.
The dividend includes a special interim dividend of Rs 12 apiece and a final dividend of Rs 44 per share.
The special interim dividend comes from the exceptional gain resulting from the sale of the company's holding in Bajaj Housing Finance Ltd. on account of the IPO listing in September 2024. The record date to determine the eligibility of shareholders has been fixed as May 9.
The company is set to pay its shareholders Rs 3,480 crore in dividends. Nearly 6.7 lakh retail investors holding nominal share capital up to Rs 2 lakh own 6% equity in Bajaj Finance.
As per its latest financial results, the company has cash and cash equivalents of Rs 3,642.46 crore as of year ending March 31, 2025.
Shares of Bajaj Finance closed 0.13% higher at Rs 9,105 apiece ahead of the announcement, compared to a 0.09% advance in the benchmark Sensex. The stock has risen 33% in the last 12 months and 31% on a year-to-date basis.
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 0.3%.
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