Bajaj Finserv has outclassed the market by boosting 30%, compared to 4.5% growth in the S&P BSE Sensex in the past three months. On BSE, shares of Bajaj Finserv surged 5% to Rs 16,850 in Tuesday’s intra-day trading just after the company announced September 14, 2022, as the ‘Record Date’. It aims to determine the members eligible for the sub-division of existing equity shares along with bonus equity shares issuance of the company.

On July 28, 2022, Bajaj Finserv’s board approved the sub-division of existing equity shares with a face value of Rs 5 into Five Equity shares with a face value of Rs 1, which are fully paid- up. The board also permitted the issue of one bonus equity share of the face value of Rs 1 for every single equity share of Rs 1.

Emphasising the justification behind the split and issue of bonus shares, the management said that the company and their subsidiaries had grown considerably in terms of business and performance over the years. “This is imitated in the company’s share price touched peak of Rs 19,325 in October 2021. Since then, the price has drifted around Rs 12,200,” it said.

Currently, retail or individual shareholders encompass 98% of the total number of shareholders, who hold around 17.52% of the paid-up value of shares. Also, the company’s share price is one of the highest despite having a small capital base, the company had exclaimed.

As and when the stock price rises further, it will gradually become difficult for the small potential shareholders to participate in the company’s future aspects. The Board of Directors had approved and recommended the decided corporate actions to keep the spirit of inclusion and reward the shareholders, Bajaj Finserv said.

Bajaj Finserv is predominantly engaged in the promotion of financial services in insurance, broking, investments etc. It is termed as financial conglomerate withholding in financing businesses like Bajaj Finance, life insurance, i.e. Bajaj Life Insurance and general insurance, i.e. Bajaj General Insurance business. The stock hit a one-month high of Rs 17,145 on August 17, 2022.