Bajaj Finance stock split, bonus issue: How many shares you will have post corporate actions

India's largest non-banking financial company (NBFC) Bajaj Finance Ltd has been hovering around its all time high as the shadow lender has announced its record date for stock split and bonus issue. The company recently declared Monday, June 16 as the record date to determine the eligibility for the aforesaid corporate action.

Shares of Bajaj Finance dropped nearly a per cent to Rs 9,408.05 on Wednesday, commanding a total market capitalization of Rs 5.85 lakh crore. The stock tested its 52-week high at Rs 9,785.90 on Monday, after the company announced its record date for stock split and bonus issue.

The company had announced this corporate action, along with the results for the March 2025 quarter in April. However, the record date was announced last week, in June. Beside the results and corporate action, Bajaj Finance also announced a final dividend of Rs 44 apiece, for which record date was fixed as May 30, 2025.

In the upcoming corporate action for Bajaj Finance, shares of the company are slated to trade ex-split in 1:2 ratio, followed by a bonus issue in 4:1 issue. It means that all shares of Bajaj Finance with a face value of Rs 2 each shall be split into 2 shares with a face value of Re 1 each.

Subsequent to this, the company will also issue bonus shares in 4:1 ratio as on the record date. It means that the company will issue 4 shares with a face value of Re 1 each for every paid-up shares of Bajaj Finance held on record date. Let us understand how this stock split and bonus issue will impact one's shareholding.

Assume that an investor owns 10 shares (with a face value of Rs 2 each) of Bajaj Finance bought Rs 8,500 per share, investing Rs 85,000 in the company. Subsequent to stock split, the investor will own 10 x 2 = 20 shares (with a face value of Re 1 each) of Bajaj Finance and the purchase price shall be adjusted to Rs 4,250 apiece.

Following the subdivision of equity shares, bonus issues in 4:1 ratio will come into effect meaning an investor shall get four additional shares of the company. Since the investor owned 20 equity shares (with a face value of Re 1 each), he shall get additional 80 equity shares of Bajaj Finance (with a face value of Re 1 each).

This will result in 20 + 80 = 100 equity shares (with a face value of Re 1 each), adjusting the buying price of Rs 425 apiece. However, one must understand that the bonus issue and stock split shall not influence the total value of holding in Bajaj Finance. Price shall be adjusted accordingly.