Shares of Bajaj Finserv (NSE 3.88%) rose over 8% in early trade on Tuesday as the counter traded ex-split and ex-bonus.

The company has announced a 5:1 stock split, which means eligible shareholders will get five shares worth Rs 1 for every Rs 5 they hold.

Similarly, the company announced 1:1 bonus shares, emphasising that eligible shareholders will get one share of the company for every share they hold.

Bajaj Finserv shares rose nearly 8% to Rs 1,846 (adjusted) on Tuesday as the situation unfolded before trading at Rs 1,830.3 at 9:45 am. On a consolidated basis, the stock closed at Rs 1,715.8. The company has determined September 14, 2022, as the record date for the stock split and bonus shares issuance. The stock traded ex-split and ex-bonus on Tuesday.

Investors who bought shares of Bajaj Finserv on Monday are eligible to participate in the corporate action mentioned above as they will receive delivery in their Demat accounts on the record date.

In announcing the sub-division and issuance of bonus shares in July, the holding company said it wanted to provide liquidity to existing shareholders and make shares available to potential investors.

Earlier this month, the company was also informed about the amendment to the company’s memorandum and articles of the association through a regulatory filing.