Bajaj Finance’s stock, which closed at Rs. 9,331 per share in Friday’s trading session, is currently trading significantly lower at Rs. 930 per share, reflecting a drop of nearly 90 percent.
However, this sharp decline is not due to any adverse developments or negative news related to the company. The steep fall is the result of a corporate action that took effect today.
Why the Stock is down 90% Today
Today marks the ex-date for both the stock split and the bonus issue of Bajaj Finance. As a result, investors who held the company’s shares as of Friday, including those who purchased shares on Friday, will see an increase in the number of shares they hold, while the market price per share has been adjusted downward accordingly. This price adjustment and major fall in prices following such corporate actions are normal and do not impact the overall value of the investment.
As part of the stock split, each existing equity share with a face value of Rs. 2 was split into two equity shares of Rs. 1 each, effectively doubling the number of shares held by investors. Immediately following the split, the company issued a 4:1 bonus, meaning shareholders received four additional shares for every one share held (post-split).
If you originally held 100 shares of Bajaj Finance with a face value of Rs. 2 each, these shares were first split in a 1:2 ratio, resulting in 200 shares of Rs. 1 each. Following this stock split, the company issued a 4:1 bonus, meaning shareholders received four additional shares for every one share held post-split.
As a result, on your 200 shares, you would have received 800 bonus shares. In total, you would now hold 1,000 shares. 200 shares (post-split) and 800 bonus shares. While the number of shares has increased, the total investment value remains unchanged due to the adjustment in share price.
Bajaj Finance Limited, headquartered in Pune, is one of India’s leading non-banking financial companies (NBFCs) and a key subsidiary of Bajaj Finserv. Originally incorporated in 1987 as Bajaj Auto Finance, the company has evolved into a diversified financial services provider offering a broad range of products, including consumer finance, SME lending, commercial lending, and wealth management.
The company reported a 23.65 percent YoY increase in revenue from Rs. 14,926 Crore in Q4FY24 to Rs. 18,457 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 2.33 percent in revenue from Rs. 18,035 Crore in the previous quarter.
Their Net profit saw an increase of 18.84 percent YoY from Rs. 3,825 Crore to Rs. 4,546 Crore for the same period. On a QoQ basis, the company reported an increase of 5.52 percent in Net profit from Rs. 4,308 Crore in the previous quarter.
Written By Abhishek Das
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