In the past three months, Bajaj Finserv has outperformed the market by surging 30 per cent, as compared to 4.5 per cent rise in the S&P BSE Sensex
Buzzing stocks | Bajaj Finserv | Markets
SI Reporter |
Last Updated at August 30, 2022 10:30 IST
Shares of Bajaj Finserv surged 5 per cent to Rs 16,850 on the BSE in Tuesday’s intra-day trade after the company fixed September 14, 2022 as the ‘Record Date’ for the purpose of determining the members, eligible for the sub-division of existing equity shares, and issue of bonus equity shares of the company.
On July 28, 2022, Bajaj Finserv’s board had approved sub-division of existing equity share of face value of Rs 5 into five equity shares of face value of Rs 1 fully paid- up. The board had also approved issue of one bonus equity shares of face value of Rs 1 for every one equity share of Rs 1.
Highlighting the rationale behind the split and issue of bonus shares, the management had said that the company and subsidiaries have grown significantly, in terms of business and performance over the years. “This is reflected in the share price of the company, which touched peak of Rs 19,325 in October 2021. Since then, the price has hovered around Rs 12,200,” it said.
Currently, retail or individual shareholders comprise 98 per cent of the total number of shareholders, who hold around 17.52 per cent of paid-up value of shares. Amongst its peers, the share price of the company is one of the highest despite a small capital base, the company had said.
As and when the stock price rises further, it will be increasingly difficult for small potential shareholders to partake in the company’s future. Keeping with the spirit of inclusion and in order to reward the shareholders, the board of directors, approved and recommended the said corporate actions, Bajaj Finserv had said.
Bajaj Finserv is primarily engaged in promotion of financial services such as insurance, broking, investments etc. It is a financial conglomerate with holding in financing business (Bajaj Finance), life insurance (Bajaj Life Insurance) and general insurance (Bajaj General Insurance) business.
In the past three months, Bajaj Finserv has outperformed the market by surging 30 per cent, as compared to 4.5 per cent rise in the S&P BSE Sensex. The stock hit a one-month high of Rs 17,145 on August 17, 2022.
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