Bajaj Finserv shares jumped 5% to 16,850 rupees on BSE in intraday trading on Tuesday after the company set September 14, 2022 as a “record date” in a bid to determine members, eligible for the subdivision of existing capital shares and free issue of capital shares of the company.
On July 28, 2022, the Bajaj Finserv Board had approved the subdivision of the existing capital share with a nominal value of Rs 5 into five fully paid-up capital shares with a nominal value of Rs 1. The board had also approved the issue of one free participating share with a nominal value of Rs 1 for each participating share of Rs 1.
Highlighting the reasons for the spin-off and the free share award, management said the company and its subsidiaries had experienced significant growth, in terms of business and performance over the years. “This is reflected in the company’s share price, which peaked at Rs 19,325 in October 2021. Since then, the price has hovered around Rs 12,200,” he said.
Currently, retail or individual shareholders represent 98% of the total number of shareholders, who own approximately 17.52% of the paid-up value of the shares. Among its peers, the company’s share price is one of the highest despite a small capital base, the company had said.
As the stock price increases, it will be increasingly difficult for potential small shareholders to participate in the future of the company. In keeping with the spirit of inclusion and in order to reward shareholders, the board of directors has approved and recommended the said corporate actions, Bajaj Finserv said.
Bajaj Finserv is mainly engaged in the promotion of financial services such as insurance, brokerage, investments, etc. It is a financial conglomerate with activities in finance (Bajaj Finance), life insurance (Bajaj Life Insurance) and general insurance (Bajaj General Insurance). .
In the past three months, Bajaj Finserv has outperformed the market by jumping 30% against a 4.5% rise in the S&P BSE Sensex. The stock reached a one-month high of 17,145 rupees on August 17, 2022.
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