Bajaj Finserv Announces Stock Split and Bonus For Shareholders – Stock up by 10%

  • Board has announced Split and bonus for shareholders
  • Company reported strong numbers
  • Street is upbeat. Stock jumps 10%

The Board of Directors of Bajaj Finserv met today. On July 28, 2022, the Board of Directors approved the sub-division of each existing equity share with a face value of Rs. 5/- (Rupees Five Only) into five (5) equity shares with a face value of Rs. 1/-.

The Board of Directors has authorised the issuance of one bonus equity share with a face value of Rs. 1/- (Rupees one only) for every one fully paid-up equity share with a face value of Rs. 1/-.

Revenue from operations increased 14 percent year on year to Rs 15,888 crore, up from Rs 13,949 crore in the previous quarter.

Company reported a 57 per cent jump in net profit at Rs 1,309 crore in the first quarter ended June 30, backed by the healthy earnings and operational performance of its subsidiaries. Results are strong when measured with Comparative performance during the preceding period. During the Q1 in  year-ago period, Bajaj Finserv had posted a net profit of Rs 833 crore.

As of 30 June 2022, capital adequacy remained strong at 26.16 percent. Tier-1 capital accounted for 23.84 percent.

Bajaj Finserv is primarily a holding company with three significant subsidiaries. Bajaj Finance, Bajaj Allianz General Insurance Company Limited (BAGIC), and Bajaj Allianz Life Insurance Company Limited are all subsidiaries of Bajaj Finance (BALIC).

Net New Business Value (NBV), the metric used to measure the profitability of the life insurance business, increased significantly to Rs 135 crore in Q1FY23 from Rs 25 crore in Q1FY22, according to Bajaj Finserv.

Street was upbeat about the result. At BSE stock closed at Rs 14652.3, 10.14 % highe i.e. Rs 1349.15  

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