Bajaj Finance shares : On June 16, 2025, many investors logging into their demat accounts were met with a shocker — Bajaj Finance, one of India’s most prominent and reliable NBFC stocks, seemed to have plummeted by 90% overnight. From a previous close of around ₹9,331, the share price was now visible as ₹956. But don’t panic — this was not a crash. It was a technical price adjustment due to Bajaj Finance’s recent stock split and bonus share issuance, both of which were officially implemented on June 16.
What Caused the Sharp Price Adjustment?
Bajaj Finance recently undertook two significant corporate actions:
- A bonus share issue in the ratio of 4:1
- A stock split in the ratio of 1:2
A bonus issue in the 4:1 ratio means that for every share held by an investor, the company issued four additional shares. Following this, the 1:2 stock split means each share was divided into two shares, reducing the face value and per-share price.
Here’s an example to clarify the math:
- If you held 10 shares, you would receive 40 bonus shares, making it 50 shares.
- After the 1:2 stock split, you now have 100 shares in total.
- The price per share, instead of ₹9,331, is now ₹956.
- Your total investment value? Still roughly the same.
So no, your portfolio didn’t lose 90% of its value. It simply got restructured into more shares at a lower price, making them easier to trade and more accessible for new investors.
Why Do Companies Do This?
This isn’t Bajaj Finance’s first stock split. In 2016, it did a 1:5 stock split, which also helped improve liquidity. A high per-share price can become a psychological barrier for retail investors, especially in a country like India where many small investors participate in markets. By lowering the share price without impacting the overall valuation, companies encourage broader retail participation.
Bonus issues and stock splits:
- Improve liquidity
- Attract new investors
- Are often seen as signs of a confident and well-performing company
Bonus & Dividends: Extra Reward for Shareholders
In addition to this, Bajaj Finance announced a final dividend of ₹44 per equity share and a special dividend of ₹12, making the total payout ₹56 per share for FY25.
- The record date for the final dividend was May 30, 2025.
- The dividend is expected to be paid by July 28.
- The special dividend, declared earlier, was paid by May 26.
These generous payouts show that the company has strong free cash flow and continues to reward its investors handsomely.
Bajaj Finance Q4 FY25 Results: A Snapshot of Strength
The company also recently announced its financial results for the January–March 2025 quarter, which further supports the stock’s resilience and fundamentals:
- Net Profit: ₹4,480 crore (up 17% YoY)
- Revenue from Operations: ₹18,457 crore
- Net Interest Income (NII): ₹9,807 crore (up 22%)
- Assets Under Management (AUM): Grew 26%
- New Loan Bookings: Increased by 36%
This performance beat analyst expectations and reflects continued high demand for credit, especially in consumer finance and small business lending.
The Real Meaning Behind the “Crash”
For those who are new to stock markets or unfamiliar with corporate actions, such price adjustments may appear as devastating losses. But it’s essential to understand how these financial mechanisms work.
Let’s break it down in plain terms:
- The number of shares you own increases
- The price per share decreases
- The total value of your holdings remains the same, barring normal market fluctuations
This move also enhances liquidity and increases trading volumes, as smaller retail investors are more likely to buy shares at a lower price point.
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What Should Investors Do?
There’s no reason to panic. In fact, this move may open up opportunities:
- Retail investors can now accumulate the stock at a more affordable price.
- Existing investors now hold more shares, increasing flexibility in partial selling.
- The stock becomes more liquid, reducing the bid-ask spread for better trade execution.
Those with a long-term perspective can look at Bajaj Finance as a blue-chip financial stock with solid fundamentals, strong governance, consistent profitability, and growing market presence.
Market Sentiment & Expert Take
Financial experts generally view such corporate actions positively when they are backed by strong earnings. Bajaj Finance has proven its ability to consistently deliver results, expand its customer base, and maintain asset quality.
Brokerage houses and analysts continue to remain bullish on the stock post-adjustment, citing:
- Expanding digital lending ecosystem
- Steady growth in consumer durable and personal loans
- Resilient asset quality despite rising interest rates
Conclusion: Don’t Fear the Drop — Understand It
The sudden appearance of a 90% crash in Bajaj Finance stock was merely a reflection of a mathematical adjustment, not a decline in company value. Through its bonus issue and stock split, Bajaj Finance has made its shares more attractive and tradeable for retail investors without changing its strong fundamentals. When companies like Bajaj Finance carry out such actions while also delivering strong earnings and paying dividends, it speaks volumes about their financial health and confidence in the future.
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