Along with its results, the board will also consider proposals to give out a special dividend for its shareholders, a bonus issue of shares, as well as a stock split.
This will be the first instance in nine years that the company will be issuing bonus shares. Back in 2016, the company had issued one bonus share for every one share held by its shareholders.
Along with the bonus issue, Bajaj Finance had also split one equity share of the company that had a face value of ₹10 each, into five shares, which now have a face value of ₹2.
In case the board does approve a stock split, it will be a 1:1 split, as a share of ₹2 will be split into two shares of ₹1 each.
A stock split is generally considered by a company to increase its outstanding shares, and also improve trading liquidity by making the stock more affordable to its shareholders.
Last year, Bajaj Finance had declared a final dividend of ₹36 per share, which is still the highest in the company’s history as a public company.
Shares of Bajaj Finance are trading 0.5% higher on Tuesday at ₹9,051.5. The stock has corrected marginally from its 52-week high of ₹9,660.
