Bajaj Finance Limited has once again proven its commitment to investor confidence. The leading Indian Non-Banking Financial Company (NBFC) recently made three significant announcements that sent ripples through the market.
Stock Market: Bajaj Finance Limited has demonstrated its reliability not only for customers but also for its investors, consistently delivering benefits. The leading NBFC in the country recently announced a dividend, stock split, and bonus shares, offering investors a triple benefit. These decisions have not only increased the value of investors' portfolios but also strengthened Bajaj Finance's market position.
Dividend Launch: A Massive 2200% Return
The company first announced a final dividend of ₹44 per share at a face value of ₹2 for the fiscal year 2024-25, representing a 2200% return on face value. This dividend was declared at a time when Bajaj Finance's profit margins and loan demand are steadily increasing. The company set the record date for the dividend as May 30, 2024, meaning investors holding shares on this date were entitled to the dividend.
Stock Split and Bonus Shares Follow
Following the dividend announcement, Bajaj Finance delivered more good news. On June 6th, the company announced a 1:2 stock split and a 4:1 bonus share issue. This means that one share with a face value of ₹2 will be split into two shares of ₹1 each. Additionally, four bonus shares will be issued for every share held. Therefore, an investor holding one share will receive a total of eight shares—two from the split and four as bonus shares.
Record Date: June 16th
The record date for this dual benefit of the stock split and bonus shares is June 16, 2024. Investors holding Bajaj Finance shares on or before this date will be eligible. This decision generated market excitement, reflected in the share price.
Bajaj Finance's share price closed at ₹9,372 per share on Friday, up 5%. Market experts believe that the company's b fundamentals, consistent profit growth, and these shareholder-friendly initiatives have further solidified investor confidence. This price increase is attributed to the bonus and split news, as well as b quarterly results.
Quarterly Results: Impressive Growth in Profit and AUM
In the March quarter, Bajaj Finance's consolidated net profit increased by 19% year-on-year (YoY) to ₹4,545.6 crore. While its Net Interest Income (NII) stood at ₹9,807.1 crore, slightly lower than analyst estimates, this figure still reflects the stability of the company's income.
The company's Assets Under Management (AUM) also saw rapid growth. AUM increased by 26% year-on-year, reaching ₹4.17 lakh crore by March 2025. This growth indicates that the demand for consumer and commercial credit in the country remains b. AUM increased by ₹18,700 crore in this quarter alone, a significant indicator of accelerating economic activity.
Market Focus on Future Growth
Market analysts believe that Bajaj Finance's actions aim to increase share liquidity and attract retail investors. The stock split will reduce the market price of the share, making it more accessible to smaller investors. Meanwhile, the bonus share signifies the company's confidence in its capital and its expectation of continued b future performance.
