Bajaj Finance shares gain 10% in two sessions; here’s what fuelled rally in NBFC stock?

Shares of Bajaj Finance rose over 4% on Monday, extending its gaining streak for the second straight session, after the Bajaj group company unveiled the date for stock split and bonus issue. The non-banking financial company (NBFC) stock has rallied as much as 9.55% in two sessions.

Early today, Bajaj Finance shares opened 1.7% higher at ₹9,535.25 on the BSE, after gaining 4.9% from Friday's figures. During the session so far, the blue-chip stock gained as much as 4.4% to hit a fresh 52-week high of ₹9,785.90, while its market capitalisation rose to ₹5.98 lakh crore.  

The NBFC heavyweight has rebounded 52% from its 52-week low of ₹6,426.05 touched on July 16, 2024. The Bajaj group stock has delivered nearly 36% return in the last one year; 40% in six months; and 39% in the calendar year 2025. In the past month, the counter added over 11%.

NBFC stock surges on stock split, bonus issue plans 

On June 6, Bajaj Finance, a subsidiary of Bajaj Finserv , announced the date for its upcoming 1:2 stock split and 4:1 bonus share issuance. The company has fixed June 16, 2025, as the record date for these corporate actions. This marks the company’s first bonus share issuance in nine years, following its 2016 bonus issue of one share for every one share held. Similarly, the stock split was done in 2016 when shares with a face value of ₹10 were divided into five shares of ₹2 each.

In the last meeting held on April 29, 2025, the company's board recommended a 2:1 stock split. This means, each existing fully paid-up equity share with a face value of ₹2 will be divided into two equity shares, each with a face value of ₹1.

The board of the company had also approved issuance of bonus equity shares in the ratio of 4:1, i.e., four bonus equity shares of ₹1 each for every one equity share of ₹1 each fully paid up.

Adding to it, the company had declared a final dividend of ₹44 per share for FY25—its highest-ever—along with a special dividend of ₹12 per share. The special dividend stems from a one-time gain following the partial stake sale in subsidiary Bajaj Housing Finance during its IPO last year. Combined, shareholders will receive a total dividend of ₹56 per share, surpassing last year’s record final dividend of ₹36 per share.

For the fourth quarter ended March 31, 2025, Bajaj Finance posted a consolidated net profit of ₹4,546 crore, up 19% year-on-year (YoY) from ₹3,825 crore in the same period last year. Net interest income (NII) for the quarter increased 22% YoY to ₹9,807 crore, while net total income rose 23% to ₹11,917 crore.

For the full year, consolidated profit stood at ₹16,779 crore, up 16% over FY24. This was driven by strong momentum in loan disbursements, customer additions, and higher interest income, as per the filing. As of March 31, 2025, assets under management (AUM) stood at ₹4,16,661 crore, up 26% YoY.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)