By the end of June, those 10 parts can be 100. Here’s how it all spread and what does it mean to you.
Two major movements from the financial in Bajaj
Bajaj financially approves both shareholder-friendly actions:
- An issue with the ratio of ratio 4: 1, it means you get 4 additional features for each 1 yourself.
- A stock split at Ratio 1: 2, which divides each part of Rs 2 on two parts of Rs 1 each.
To be eligible, you should make parts of your Demat account at the end of the Friday market, June 13, as the official date of record Monday, June 16.
We will break it into an instance of 10 parts
Step 1: Bonus Issue
You’re getting 10 pieces now. For each side, you will get 4 bonus features.The mean: 10 (available) × 4 = 40 bonus features.
So now there are 10 + 40 = 50 parts after the bonus issue.
Step 2: Spact Split
Today, these 50 parts pass through a stock split – each part is divided into two.
So, 50 × 2 = 100 parts overall after separation.
What does this mean for your investment?
While the number of parts you hold adds tenfold – from 10 to 100 – The value of your investment will remain the same before, because the price of stock is adjusted to proportion.
This step is not part of the easy profit but about the stock making more cheaper and accessible, can increase investors’ healing and interest.
When will it reflect on your Demat account?
Bajaj Finance announced that bonus parts and stock split will be completed on June 27. After this date, you need to see the updated amount of your account.
So if you’re holding only 10 parts now, you’ll find 100 sides after June 27th at Bajaj Finance if you log in June 27.
(Matan -re: Recommendations, suggestions, views and opinions given to experts themselves. This does not represent views of economic times)
