Shares of Bajaj Finance Ltd. will be of interest on Friday, as the day marks the last session for investors to buy shares to qualify for receiving bonus shares before the stock goes ex/record-date.
The record date determines the eligible shareholders who will receive the bonus. The ex-dividend date, which mostly coincides with the record date, marks when the share price adjusts to reflect the upcoming payout.
Bajaj Finance board announced a 4:1 bonus, meaning that the company will issue four bonus shares for every one share held. In addition, the company also announced a stock split. Each equity share of face value Rs 2 will be split into two shares of Rs 1 each.
To qualify for the bonus shares, investors must acquire Bajaj Finance's shares at least one day before the record date. Given India's T+1 settlement cycle, shares purchased on the record date itself will not be eligible for the bonus allocation.
The record date for the stock split and bonus shares has been fixed for June 16, which means only those shareholders who hold Bajaj Finance shares by June 13 will be eligible.
For example, an investor currently holding 10 Bajaj Finance shares will receive an additional 40 shares, resulting in a total of 50 shares post-bonus issue. However, it is essential to note that while the quantity of shares will increase, the total value of the investment will remain unchanged, as the share price will adjust to reflect the increased number of outstanding shares.
Bajaj Finance Q4 Performance
Bajaj Finance reported a 16% increase in its consolidated net profit for the March quarter, falling short of analysts' expectations.
The non-banking financial company recorded a net profit of Rs 3,940 crore during the period. This was below the Rs 4,230 crore profit estimated by Bloomberg analysts.
Meanwhile, the net interest income for the March quarter rose by 21% to Rs 8,910 crore, compared to Rs 7,340 crore in the same quarter last year.
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