Earlier this week, we wrote to you about Bajaj Finserv, a consistent compounding stock, and the company's decision to split shares and approve bonus issue.
On the day it announced these plans, share price of Bajaj Finserv rallied 7%.
Today, the company's board approved the stock split, bonus plan and also the Q1 results.
Here are five takeaways from Bajaj Finserv's Q1 results.
Bajaj Finserv's board approved the sub-division of equity shares in the ratio of 1:5. What this means is each share of Bajaj Finserv having a face value of Rs 5 will split into 5 shares with a face value of Rs 1 each.
The board also announced issue of bonus shares, which will be issued after the stock split.
Bajaj Finserv will be required to amend the capital clause of the memorandum of association, subject to approval of the shareholders to be obtained by postal ballot, it said in a regulatory filing.
The company intends to complete these corporate actions on or before 26 September 2022.
Talking about the intention behind the stock split and bonus, here's what the company said in the exchange filing:
The intention behind the stock split is to increase liquidity in the capital market and also widen the shareholder base.
Since you're interested in stock splits, check out these 7 companies that have never split their shares.
Investors were pleased with the company's decision to split shares and bonus issue.
Today, Bajaj Finserv share price opened the day 2% higher at Rs 13,500 against its previous close of Rs 13,303.
Soon as the session progressed, shares of the company extended gains and rallied 9% to touch a high of Rs 14,579.
Bajaj Finserv has a 52-week high quote of Rs 19,320 touched on 19 October last year while it has a 52-week low quote of Rs 10,777 touched earlier this month on 1 July.
On a YTD basis, Bajaj Finserv share price is down 11%.
Bajaj Finserv is one of the consistent compounding stocks that has fallen quite a lot due to the market volatility.
In the last five years, the company's sales have grown at a CAGR of 24.2% while net profit has grown at a CAGR of 21.6%.
To know more, check out Bajaj Finserv's latest news and analysis.
Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group.
It serves millions of customers in the financial services space by providing solutions for asset acquisition through financing asset protection through general insurance family protection, and income protection in the form of life & health insurance as well as retirement & savings solutions.
Bajaj Finserv was formed in 2007 as a result of its de-merger from Bajaj Auto and is the holding company for the businesses dealing with financial services of the Bajaj group.
For more details about the company, you can have a look at Bajaj Finserv factsheet and quarterly results on our website.
You can also compare Bajaj Finserv with its peers.
Bajaj Finserv vs Cholamandalam Financial Holdings
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