Bajaj Finance Share Price Drop Explanation
So let’s start. Where you see, today we will discuss about Bajaj Finance LED share. If you check, what is its price today? So it is 933. The previous closing was 9340. And check and compare, the stock is seeing a 90% decline today. Everyone will say that a stock has crashed. But this is not a crash. Why? What is the reason behind it?
Bonus and Split Event Explained
Look here, the event that is happening today is called bonus and split event. Due to which you are seeing a lot of price adjustment today. So whatever doubts are related to bonus and split, we will try to clear them all here. Like how many bonus shares will you get? How many split shares will you get? Will I get bonus split shares? This will also be checked.
Impact on Investor Accounts
Along with this, whatever shares are invested, investors, they must be seeing a good loss in their account today. What is the reason behind it? Along with this, when will the bonus and splitters be credited to your account? Should I buy, sell or hold this stock? What adjustments will be seen in the end FO? We are going to check all these things now. So let’s start.
Split and Bonus Ratio Details
The first thing we will check is the bonus split ratio. So the first thing we will see here is the ratio of split. It is being told that the current face value of one equity share that you are holding was two. Its face value was two. Now what? Its new face value is becoming one. In simple words, one share will become two shares in your demat account. So due to split, one share will become two shares.
Bonus Event and Share Multiplication
Along with this, look here, a bonus event is also happening. So the bonus ratio is 4:1. That is, in exchange for one equity existing share, the company will issue four bonuses here. So in exchange for one share, the company will issue four bonuses here. Now what is happening due to both the events? Due to split, one share is becoming two shares. Because of bonus, you will get four bonuses in exchange of one share.
Total Share Count After Adjustments
So, in exchange of two shares, you will get eight bonuses here. Now see, two shares will already be eight shares as bonus, so total one share will be 10 shares in your demat account. So if you have 10 shares, then you will have 10 shares in your demat account. Now let’s move ahead.
Record Date Clarification
Along with this, the company had made a record announcement. Look at the record date, today is 16th June 2025. This is its record date. So here, that is why today you have seen a good price adjustment here. Because this is its record date.
Eligibility Criteria for Bonus/Split
Now many people will have a doubt that if I buy this share on 16th June, that is, today, then will I be eligible for the Scorpio event? So you are not eligible. 16th June is its record date. Those who bought the shares on 13th June, Friday, and kept them till the end recorded date, will be eligible for the Scorpio event.
Example Calculation of Price Adjustment
Now, moving ahead, due to this event, a lot of price adjustment is being seen today due to the bonus split event. Suppose you bought one quantity share of 9334 which is its closing price. You bought this share at this price. You spent this much money of 9334 to buy one share. The company says that one share will become two shares according to your demat because of the split event.
Share Price Drop Analysis
So, see, one share became two shares. Now what is the reason for the split? Because the company will issue you the split shares in the ratio in which its price will fall in the same ratio. So, now look at this, divide it by two. So, what will be its price due to the split? It is becoming 4667. Now multiply these two, then what is the value of investment? It is 9334.
Bonus Share Value Breakdown
Now this is happening because of split. Now simultaneously bonus event is also happening here. So how many shares were there because of split? There were two shares. So see, I have written two shares here. Now what is the price? You can see 4667. Now the company says that in exchange of two shares, the company will issue eight bonuses. Because four bonuses in exchange of one share. So eight bonuses in exchange of two shares. So two shares already four eight shares in the form of bonus will become 10 shares.
Adjusted Share Value and Misconceptions
What is it now? See, you divide it by 10. Investment value: If you have bought one share like this, then what is its price here? ₹933.40 was seen here. That is, price adjustment is happening in this way. Look here, everyone will say that they are getting shares for free. But shares are not available for free here. What is happening due to the bonus and splits event? One share is becoming 10 shares in your demat account. The end price is falling in the same ratio. So here, as I said earlier, no miracle is happening here. Its price falls in the same ratio in which the company issues bonuses and splits.
Why Companies Issue Bonus/Splits
Now many people have this doubt that if this is so then why does the company bring bonus and splits? So the reason behind bringing it is that when the quantity of shares increases in the share market, then the liquidity increases. When liquidity increases, then both investment trading increases. Also see its price is 9334. Today, when it is adjusted to 933, then retail investors, that is, small investors, will also start buying and selling shares in it, then both investment trading will increase.
Investor Benefit and Liquidity
Also, those who have already invested in shares, who will be getting good profit. Now see, they are also getting the option that now they have these 10 shares, so they should also start investment trading.
Temporary Value Drop in Portfolio
Now let’s move forward. Today, see who is in the problem? Investors who have invested in any share will see a significant drop in their investment value. A significant drop will be seen. If the investment value is in profit, the profit will decrease. If there is a loss, the loss will increase.
Share Credit Delay and Temporary Loss
What is the reason behind it? Look here, the price adjustment happens, the price has been adjusted from 9334 to 933. But the quantity of shares has not been credited to your account yet. The bonus and splits have not been credited to your account yet. What happened because of that? You will see a significant drop in your investment value. You will see a crash drop of up to 90%.
Expected Credit Timeline
So here the split shares and bonuses have not been credited to your account yet. If you are facing loss due to this reason, then do not be afraid of seeing it. As soon as the split shares and bonuses are credited to your account, everything will automatically change to the corrected value. Right now these will be invisible.
Date of Bonus and Split Credit
So now the important question is when will the bonus and split shares come to your account? So look here, there was an update from the company. Here it was told that the estimated date by which such bonuses would be credited and dispatched. Here it was told that it would be done on and before 27 June 2025, this entire process will be completed here.
SEBI Norms and Actual Credit Expectation
You can see. So it will be completed by 27 June. But SEBI’s new norm says that it should be completed within a gap of four to five days. So the most probable chances are that by 21-22 this entire process will be completed. This is related to bonus and split. So it will be completed before this. So don’t be afraid of seeing this.
Buy, Sell or Hold Advice
As soon as the bonus splits are credited to your account, everything will automatically change to the corrected value. Now let’s move ahead. Here the parent question becomes what will I do at this place? Buy, sell, hold, what will I do? So I would like to tell you that Bajaj Finance is a giant NBFC stock, a leader stock. I will work with the strategy of buy on dip here because it is an investment grade stock.
Investment Strategy
Here, I have already told you when to buy that when the price adjustment will happen, then I will think of buying here. Like SIP, I will make small investments. Because the mood of the market is a bit negative right now. So I will not invest the entire money at once. I will think of investing here only after every small correction. So I have also told you what I am going to do here.
Adjustment in Futures and Options
Now let’s move ahead. There is an important question that what adjustment will be seen in futures and options. So look here, the previous lot size was 125, whose lot size you will see a lot of changes. Here, due to split, the adjustment factor is two. Due to bonus, it is five. If both are multiplied, then the adjustment factor here is coming out to be 10.
Revised Lot Size and Strike Price
So look at this, what will be the adjusted revised market lot? So till June expiry, the lot size here will be ₹1250. You can find it by multiplying it by 10. And what will be the July expiry onwards? So you will see 750 here. This is not there now. We are talking about July expiry. So what is the current situation? Its lot size will be 1250 from today. Now the second question here is what will be the strike price?
Strike Price Calculation
So to find out the strike price, you can divide it by 10 and find out its strike price. Whatever its strike price is, let’s say it is ₹9300, then what will be the new strike price now? So here you will see 930. So this is what will be the adjustment in your future and option? I have also told you this.