FridayOL

Kuala Lumpur, Malaysia - Investors in Bajaj Finance are celebrating a significant milestone as the company's shares surged to a 52-week high on Friday. This impressive performance follows the announcement of a 1:2 stock split and a generous 4:1 bonus issue, set to take place on June 16, 2025.

The news sent ripples of excitement through the market, with shares jumping by a notable 4%, reflecting strong investor confidence in the Non-Banking Financial Company (NBFC).

What's Driving the Surge?

The combination of a stock split and a bonus issue is a powerful signal to the market. A stock split makes the shares more affordable and accessible to a wider range of investors, potentially increasing trading volume and liquidity. The bonus issue, essentially a free distribution of shares to existing shareholders, rewards loyalty and demonstrates the company's financial health and commitment to shareholder value.

Analysts believe this move is strategically designed to enhance shareholder participation and further fuel the company's growth trajectory. Bajaj Finance has consistently delivered strong financial results, and this announcement reinforces its position as a leading player in the Indian financial sector.

Understanding the Split & Bonus Issue

Let’s break down what each of these actions means:

• Stock Split (1:2): For every two shares you currently own, you will receive one additional share. This effectively halves the price per share while maintaining the total value of your holdings.
• Bonus Issue (4:1): For every one share you own, you will receive four additional shares. This is a direct reward to shareholders, funded from the company's reserves.

Looking Ahead

The record date of June 16, 2025, is crucial. To be eligible for the stock split and bonus issue, investors must hold Bajaj Finance shares in their Demat account before this date. The market is anticipating continued positive momentum for Bajaj Finance, and this announcement is likely to attract further investment.

While past performance is not indicative of future results, the company's strong track record and strategic initiatives position it well for continued success. Investors in Malaysia, particularly those with an interest in the Indian market, are closely monitoring this development.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.