Bajaj shares up because of bonus shares
India's second largest two-wheeler maker, Bajaj Auto on Wednesday announced it is thinking of issuance of bonus shares. And for the same purpose the board of the company is going to meet on July 22.
This is 13 years later that Bajaj is again thinking of having bonus shares. Analysts expect that this step was taken since the company has been facing falling share values and a remarked fall in the investor confidence.
In a statement sent to the Bombay Stock Exchange, it has said, "A meeting of the board of directors of the company will be held on July 22, 2010, to consider a proposal for declaration of bonus shares, subject to approval by shareholders."
No other details' regarding the bonus shares was given in the release.
Post the news, the shares of the company went up and touched an all time high of Rs 2,461.70 per share in the afternoon, which is 2.15 per cent higher than the previous close.
The last issuance of bonus shares was done in 1997 when the ration was 1:2. At that time Bajaj Auto was known as Bajaj Holdings and Investments Ltd.