Bajaj FinServ to Stock Split: New Investor on Watchout
Bajaj Finserv shares were among the best performers in the month of August The
stock is currently performing at an upper circuit of Rs 17205.65.
The company said it would determine eligible members on September 14,
and split the shares at the ratio of 5:1 (one share divided into 5) and 1 bonus share for each existing share.
With the current value of the stock moving higher, it will be difficult for potential investors to buy new shares at current rates.
The company said the stock split will not reduce the value of the stock and ownership of the stock for existing shareholders.
After the stock split and issue of bonus stock, the total shares of Bajaj Finserv will increase from 5,92,80,927 to 1,59,28,09,270.
When a company decides to split a stock, it has to make the stock more affordable at a higher price.
This will increase the liquidity of the shares, while the existing shareholders will get additional shares as bonus.
It also increases the total number of shares in that company.
In the past 52-week performance of the shares, the share price has touched a high of Rs 19325 per share in October 2021.
Whereas the 52-week low was Rs 10727 on June 30, 2022.
Despite its low value, Bajaj Finserv gave 3300 per cent return from the stock price initially at Rs 500 to Rs 17205 over 10 years.
And, a return of around 200 percent in the last 5 years.