Bajaj Finserv Stock Split: Shares of Bajaj Finserv rose more than 3 percent in early trading Tuesday after the company announced it would consider a stock split and bonus issuance of shares this week. The board of directors of Bajaj Finserv will consider the proposal of a subdivision of shares with a nominal value of Rs 5 each. It will also consider the proposal to issue fully paid-up bonus shares to members of the company.
Earlier, on June 27, Bajaj Finserv had announced that a meeting of the company’s board of directors would be held on Thursday, July 28, 2022, including to discuss the unaudited financial results for the quarter ended June 30, 2022 ( Q1FY23).
Bajaj Finserv: What is a stock split?
In a stock split, the publicly traded company increases the number of shares outstanding by issuing more shares to the current shareholders. The stock split also lowers the market price of the individual shares, but does not change the market capitalization of the company.
The main advantage of stock splits is that a company’s stock generally sees increased liquidity. As equities have now become more accessible to retail investors, more people would show greater demand for them, which can increase liquidity over the counter. Buying and selling stocks will be much easier after a stock split.
Stock price history
After the update, the stock hit its all-day high of Rs 13,096.80. At 10:15 AM, the scrip traded at Rs 12,829.05, about 1.73 percent above the previous close of Rs 12,610. The stock hit a 52-week high of Rs 19,319.95 and a 52-week low of Rs 10,777.00 on October 19, 2021 and July 1, 2022, respectively.
Over the past month, Bajaj Finserv outperformed the market with a 12 percent gain, compared to a 5.3 percent rise in the S&P BSE Sensex. Over the past three months, however, the stock has underperformed the market by falling 15 percent, versus a 2 percent drop in the benchmark index.
Financial
In Q1FY23, Bajaj Finserv’s consolidated sales are expected to grow by 25.8 percent year-over-year (YoY) to Rs 17,542 crore, led by credit strengthening and coupled with continued healthy premium growth in insurance business.
Healthy growth in assets under management (AUM) is expected to benefit operational performance. Focus on individual life business and continued revival of health and credit protection business in general insurance could support premium growth. Mitigation of slippage (in lending), claims (in insurance business) and base effect is expected to result in 61 percent annualized earnings growth of Rs 1,346 crore, ICICI Securities said in a earnings preview.
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