What Actually Happened
On June 16, 2025, Bajaj Finance’s stock chart showed a startling ~90% drop overnight — from around ₹9,331 to ₹956. But don’t worry: this wasn’t a market panic. The plunge occurred due to two shareholder-friendly actions that were structural, not financial:
- Bonus Issue (4-for-1): For every one share held, investors received four additional free shares
Stock Split (1-for-2): Every existing share was split into two shares, halving the face value from ₹2 to ₹1
Why the Price Plummeted
With more shares now outstanding, the stock price adjusts downward mathematically. The market cap remains the same — you just own 10 times more shares at 1/10th the price each. For instance:
- 1 original share → 5 shares after bonus → 10 post-split
- Total value remains unchanged until markets re-price the adjusted float
What It Means for Investors
- 🧮 No loss in value: The total holding value is preserved.
- 📈 Better liquidity & accessibility: More shares at a lower price may attract retail investors and improve tradeability
- 📅 Actual credits in Demat account: Updated holdings (10x the original) will reflect by June 27, per company filings
The Bigger Picture
- Strong fundamentals: Q4 FY25 net profit rose 17% YoY to ₹4,480 cr, with strong AUM and loan booking growth
- Supportive macro tailwinds: With easing inflation, possible RBI rate cuts, and enhanced consumer spending driven by tax reforms, Bajaj Finance is well-positioned for growth
🚨 Bottom Line
- The headline “90% plunge” was just a technical artifact, not a crisis.
- Investors didn’t lose, they just own more shares priced lower per unit.
- Structural changes like this can enhance market depth and broaden the shareholder base — a typical positive move.
🧭 What You Should Focus On Now
| Area | Watchpoint |
|---|---|
| Q1 FY26 Updates | Keep tabs on the June 27 holding adjustment. |
| Loan Growth Trends | With favorable interest rates, monitor pickup in NBFC activity. |
| Valuation Outlook | Bajaj Finance trades around 33‑35× TTM P/E — aligns with business quality |
🔍 Final Take: Ignore the dramatic “90%” rhetoric — it’s financial framing, not fallout. What matters more are the business fundamentals, future loan growth, and how these structural adjustments bolster the stock’s appeal.
Let me know if you’d like a deep dive into post-split price behavior, peer comparisons, or a chart-follow analysis.