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    Bajaj Finserv stock split: Here is all you need to know

    Bajaj Finserv stock split: Here is all you need to know

    Bajaj Finserv stock split: Here is all you need to know
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    By CNBCTV18.com  IST (Published)

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    Each equity share of Bajaj Finserv with a face value of Rs 5 will be split into five equity shares with a face value of Rs 1 each. The ratio of the stock split is 5:1. The company has set September 14 as the record date for determining stockholders who are entitled to the stock split benefit, the company said in a regulatory filing in August.

    Bajaj Finserv shares are set to turn ex-split this week, the non-banking finance company will split one existing equity share into five equity shares. Ahead of the stock split and bonus issue, Bajaj Finserv shares were trading in the green on Monday, September 12.
    At 9:47 am, shares of the company were up by 0.3 percent from the previous close on the BSE. However, the shares have gained nearly 10 percent from August 12 to September 12.
    In August, Bajaj Finserv shares rose nearly 13 percent on the BSE Sensex and NSE Nifty 50.
    Bajaj Finserv stock split
    Each equity share of Bajaj Finserv with a face value of Rs 5 will be split into five equity shares with a face value of Rs 1 each. The ratio of the stock split is 5:1. The company has set September 14 as the record date for determining stockholders who are entitled to the stock split benefit, the company said in a regulatory filing in August.
    After the stock split, eligible shareholders of Bajaj Finserv will receive an additional five shares on top of their existing shares, increasing the amount of Bajaj Finserv shares in their portfolio. Additionally, the cost of Bajaj Finserv shares will decrease and become more accessible to both new and current investors.
    The ex-stock split date is September 13. Essentially, the ex-split is the first day a stock trades without the benefit of a corporate action, such as a stock split. Ex-split dates are one or two days before record dates.
    Why is the Bajaj Finserv stock split important?
    The stock split has various advantages, one of which is that it makes these shares more accessible to both current and potential investors. The action increases the listed company's liquidity as well. Bajaj Finserv hopes to entice small potential owners to invest in the company's future through the stock split.
    In the letter released in July, Bajaj Finserv further added that it would become more challenging for small potential shareholders to participate in the company's development as and when the stock price rises further. The board of directors accepted and recommended the mentioned corporate initiatives in the interest of inclusivity and shareholder return.
    According to the shareholding pattern, Bajaj Finserv has 2,99,380 shareholders as of June 30, 2022, and 15,91,37,444 of those shareholders' equity shares were completely paid up. According to the regulatory filing, the company intends to finish the stock split procedure on or before September 26.
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