If you're a shareholder with just 10 shares in your Demat account, you're in for a surprise. The company has rolled out two major corporate actions, a bonus issue and a stock split, that will significantly increase the number of shares you own, without you spending a single rupee.

By the end of June, those 10 shares could soon become 100. Here’s how it all unfolds and what it means for you.

Two big moves from Bajaj Finance

Bajaj Finance has approved two shareholder-friendly corporate actions:

• A bonus issue in the ratio 4:1, meaning you’ll get 4 additional shares for every 1 share you own.
• A stock split in the ratio 1:2, which splits each existing share of Rs 2 into two shares of Rs 1 each.

To be eligible, you must hold shares in your Demat account by the close of market on Friday, June 13, as the official record date is Monday, June 16.

Let’s break it down with an example of 10 shares

Step 1: Bonus Issue

You currently hold 10 shares. For every share, you get 4 bonus shares.

That means:

10 (existing) × 4 = 40 bonus shares.

So now you’ll have 10 + 40 = 50 shares after the bonus issue.

Step 2: Stock Split

Now, these 50 shares will undergo a stock split – each share will be split into two.

So, 50 × 2 = 100 shares in total after the split.

What does this mean for your investment?

While the number of shares you hold increases tenfold — from 10 to 100 — the value of your investment will remain the same initially, because the stock price is adjusted proportionally.