Bajaj Finance in 2025: Why the Stock Split, Bonus & Dividend Matter More Than Ever
In the world of Indian finance, few names inspire as much confidence as Bajaj Finance. Once again in 2025, the company has captured investor attention—not because of market noise, but due to well-planned, shareholder-friendly actions. On June 16, 2025, Bajaj Finance executed a 4:1 bonus issue along with a 1:2 stock split, dramatically changing the stock’s face value and trading price. At the same time, it rewarded investors with a ₹56 dividend for FY25, backed by a strong Q4 financial performance.
At first glance, the sudden 90% drop in share price shocked many. However, once you look deeper, it becomes clear: this was not destruction of value—it was a strategic move for long-term growth, liquidity, and inclusion.
Let’s break down what happened, why it matters, and what it means for investors going forward.
What Happened on June 16, 2025—and Why It Matters
On June 16, Bajaj Finance shares began trading ex-bonus and ex-split. As expected, the share price adjusted sharply—from around ₹9,331 to nearly ₹956. Naturally, this caused confusion among new investors. However, the price fall was purely mathematical, not financial damage.
In fact, if you were a shareholder on the record date, you didn’t lose value—you gained more shares.
The Bigger Picture
- One original share effectively became 10 shares
- Total investment value remained unchanged
- Liquidity improved significantly
As a result, Bajaj Finance became far more accessible to retail investors.
Bonus Issue Explained: More Shares, Same Value
The 4:1 bonus issue, announced on April 29, 2025, meant shareholders received four free shares for every one share owned. These shares were issued from the company’s reserves, reflecting strong balance-sheet health.
For example:
- 10 shares → 50 shares (after bonus)
This move increased the total number of shares in circulation, which in turn improved affordability and market participation—especially for small investors.
Stock Split Explained: Lower Price, Higher Liquidity
In addition to the bonus issue, Bajaj Finance implemented a 1:2 stock split, reducing the face value from ₹2 to ₹1.
So:
- 50 shares → 100 shares (after split)
Importantly, this isn’t the first time Bajaj Finance has done this—it executed a split back in 2016 as well. Clearly, management understands how liquidity fuels long-term investor interest.
Why This Combination Works
- Bonus issue increases quantity
- Stock split lowers entry price
- Together, they expand retail participation
Why Bajaj Finance Did This: The Real Strategy
Before June 2025, Bajaj Finance shares traded above ₹9,000—simply out of reach for many investors. By reducing the price to under ₹1,000, the company opened the door to a much broader audience.
While the market capitalization remained the same, trading volumes improved and accessibility increased. Consequently, the stock became easier to buy, sell, and accumulate over time.
Dividend Update FY25: A Strong Reward for Loyalty
While corporate actions grabbed headlines, dividends delivered real cash.
Dividend Breakdown (FY25)
- Final Dividend: ₹44 per share
- Special Interim Dividend: ₹12 per share
- Total Dividend: ₹56 per share
Importantly, dividends were adjusted post-split and bonus, ensuring that total payout value stayed intact.
For instance:
- 100 shares before → ₹5,600 dividend
- 1,000 shares after → still ₹5,600 dividend
This consistency highlights Bajaj Finance’s commitment to shareholder returns.
Q4 FY25 Performance: Growth That Justifies Confidence
Behind these corporate actions lies a solid business engine.
Key Financial Highlights (Q4 FY25)
- Revenue: ₹18,334.15 crore (↑ 23.43% YoY)
- Net Profit: ₹4,479.57 crore (↑ 17.13% YoY)
- EPS: ₹104.04 (↑ 33.89% YoY)
- New Customers Added: 4.7 million
- Total Customer Base: 101.82 million
Although operating expenses rose, growth in earnings clearly outpaced costs—confirming operational strength.
What This Means for Investors: Clarity Over Confusion
1. No Actual Loss
The price fall was cosmetic. Your portfolio value remained the same—just spread across more shares.
2. Easier Trading
Lower share price improves liquidity and makes SIP-style investing more practical.
3. Dividend Stability
Even after adjustments, dividend income remains intact—a major plus for income-focused investors.
Is Bajaj Finance Still a Good Investment in 2025?
Strong Fundamentals
With diversified lending, digital expansion, and a massive customer base, Bajaj Finance continues to outperform peers.
Valuation Perspective
As of July 10, 2025, the stock traded around ₹947.65. While valuations remain premium, they reflect strong growth expectations. Analysts recommend buying on dips around ₹850–₹900.
Growth Outlook
Experts project medium-term targets of ₹1,100–₹1,500, driven by credit growth, tech-led lending, and green finance initiatives.
Summary: Bajaj Finance Stock Actions at a Glance
| Category | Details |
|---|---|
| Effective Date | June 16, 2025 |
| Bonus Issue | 4:1 |
| Stock Split | 1:2 |
| Share Impact | 10 → 100 shares |
| FY25 Dividend | ₹56 per share |
| Q4 Profit Growth | +17.13% YoY |
| EPS Growth | +33.89% YoY |
Key Takeaways for Smart Investors
- Don’t panic over adjusted prices
- Use lower prices to accumulate gradually
- Focus on long-term business strength
- Enjoy consistent dividends
- Buy on dips, not hype
Final Thoughts: A Powerhouse That’s Still Growing
Bajaj Finance’s 2025 moves were not cosmetic stunts—they were calculated, investor-centric decisions. By combining a bonus issue, stock split, strong dividends, and solid earnings, the company reinforced its reputation as a long-term wealth creator.
Whether you’re a seasoned investor or just starting out, Bajaj Finance now offers a rare mix of accessibility, stability, and growth potential. In a volatile market, that combination is hard to ignore.
Stay informed, invest patiently, and let compounding do the rest.
Frequently Asked Questions (FAQs) on Bajaj Finance Bonus, Stock Split & FY25 Performance
1. Why did Bajaj Finance share price fall by 90% on June 16, 2025?
The sharp decline to ₹956 from ₹9,331 was purely technical, due to the stock split and 4:1 bonus issue. The intrinsic value of your holdings remains the same — only the number of shares increased and the face value was adjusted.
2. What was the bonus issue ratio announced by Bajaj Finance in 2025?
Bajaj Finance declared a 4:1 bonus issue, meaning for every 1 share held, investors received 4 additional shares. This significantly boosted shareholder holdings without requiring additional investment.
3. What is the stock split ratio and how does it affect my shares?
The stock split was at a 1:2 ratio, where each existing share was split into two. Combined with the bonus issue, investors saw a 10x increase in their number of shares. For instance, 10 original shares became 100 shares after the split and bonus.
4. Am I eligible for the bonus shares if I bought Bajaj Finance after June 16?
No. To be eligible for the bonus shares, you must have held shares on or before the record date — June 16, 2025. Purchases made after that date are not entitled to bonus shares.
5. What dividends has Bajaj Finance declared for FY25?
For FY25, Bajaj Finance declared a total dividend of ₹56 per share, consisting of:
- ₹44 Final Dividend (Record Date: May 30; Payable by July 28)
- ₹12 Special Interim Dividend (Record Date: May 9; Paid around May 26)
This reflects the company’s strong cash position and shareholder focus.
6. How did Bajaj Finance perform financially in Q4 FY25?
The company reported robust performance:
- Revenue crossed ₹18,000 Cr (▲ 23.4% YoY)
- Net profit rose by 17.1% YoY
- Diluted EPS surged 33.9% YoY
This showcases strong demand, profitability, and efficient capital deployment.
7. Does the stock split and bonus dilute the value of my investment?
No. Although EPS is diluted, the overall value of your investment remains unchanged. Your shareholding increases, while the share price adjusts proportionately. It also improves stock liquidity and retail accessibility.
8. Is Bajaj Finance a good investment after this corporate action?
Yes. Bajaj Finance continues to exhibit:
- Strong earnings growth
- Healthy dividend payouts
- Expansion in loan book and AUM
Analysts believe the stock remains a long-term wealth creator in India’s high-growth lending space, especially with the adjusted price attracting new retail investors.
9. When was the last time Bajaj Finance conducted a stock split?
The previous stock split was in 2016, at a 1:5 ratio. The 2025 action marks the company’s continuing effort to make its shares more affordable and tradable.
10. How does this corporate action benefit long-term investors?
This move offers multiple benefits:
- Increased ownership units
- Better liquidity
- Affordable entry price
- Strong future prospects
These make Bajaj Finance more appealing for long-term wealth building, especially in India’s digital lending and consumer finance landscape.
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