 "Bajaj Finance surges on bonus issue, stock split plan")
Bajaj Finance has surged 6% to Rs 8,670, also its fresh lifetime high on the BSE, after the company announced that its board will meet on July 26 to consider sub-division of equity shares of the company and bonus issue.
Earlier, on June 27, 2016 the company said that a meeting of the board of directors of the company will be held on July 26, 2016, to take on record the unaudited financial results for the quarter ending June 30, 2016 (Q1).
“The board may also consider sub-division of equity shares of the company of face value of Rs. 10 each, and/or issue of fully-paid bonus equity shares to the members of the company,” Bajaj Finance said in a regulatory filing.
Stock split or sub-division of equity shares is meant to infuse liquidity and make shares affordable for retail investors who could not invest earlier due to the high stock price.
A share split itself does not increase the economic value of a company, but it can increase the shareholder base — making it easier for both retail and institutional investors to buy stocks.
Thus far in 2016, the stock of Bajaj Finance has appreciated by 43% from Rs 6,013, as compared to 6% rise in the S&P BSE Sensex.
The trading volumes on the counter more than doubled with a combined 118,173 equity shares changed hands on the BSE and NSE till 11:51 AM.
Earlier, on June 27, 2016 the company said that a meeting of the board of directors of the company will be held on July 26, 2016, to take on record the unaudited financial results for the quarter ending June 30, 2016 (Q1).
“The board may also consider sub-division of equity shares of the company of face value of Rs. 10 each, and/or issue of fully-paid bonus equity shares to the members of the company,” Bajaj Finance said in a regulatory filing.
Stock split or sub-division of equity shares is meant to infuse liquidity and make shares affordable for retail investors who could not invest earlier due to the high stock price.
A share split itself does not increase the economic value of a company, but it can increase the shareholder base — making it easier for both retail and institutional investors to buy stocks.
Thus far in 2016, the stock of Bajaj Finance has appreciated by 43% from Rs 6,013, as compared to 6% rise in the S&P BSE Sensex.
The trading volumes on the counter more than doubled with a combined 118,173 equity shares changed hands on the BSE and NSE till 11:51 AM.