The dramatic drop in Bajaj Finance’s share price—appearing as a nearly 90% “crash” in some trading platforms—was not a real market crash or a loss of value for investors. Instead, it was the result of two corporate actions: a stock split and a bonus issue.
What Happened?
Stock Split: Bajaj Finance announced a 1:2 stock split, meaning each existing share (face value ₹2) was split into two new shares (face value ₹1 each). This makes the stock more affordable for retail investors, as the share price is adjusted downward, but the total value of your investment remains the same.
Bonus Issue: The company also announced a 4:1 bonus issue. For every share you held as of the record date, you received four additional shares for free. This further increases the number of shares you own, but again, the total value of your investment does not change.
Why Did the Share Price “Drop” 90%?
Key Points
No Loss of Value: The total worth of your investment remains unchanged.
More Shares, Lower Price: You have more shares at a lower price per share.
Liquidity and Accessibility: The actions make the stock more liquid and accessible to a wider range of investors.
Not a Crash: The 90% drop is only an adjustment—not a true market decline.
Example
If you had 1 share before, after the bonus shares and split, you have 10 shares. If the old price was ₹9,000, the new price would be around ₹900 (not exact, but illustrative), so your investment value is still ₹9,000 in total.
In summary:
Bajaj Finance shares did not crash 90%. The apparent drop was simply the result of a stock split and bonus issue, which increased the number of shares and reduced the price per share, keeping your total investment value intact
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