Why did Bajaj Finserv rally so hard on Thursday in the markets?
Answer
Answer
Bajaj Finserv rallied 10% on Thursday after the board approved a 1:1 bonus issue and 1:5 stock split. As a result, the par value of Rs5 will be subdivided into 1. As a result, the stock split and the bonus would reduce market price by about one-tenth and number of shares will grow ten times. Bajaj Finserv had underperformed in the June quarter but had surged sharply in July. The reduced market price will enhance liquidity in the stock.