Shares of Bajaj Finserv zoomed over 9 percent to Rs 14,557 on the BSE on Thursday after the company reported a 57 percent increase in consolidated net profit for the quarter ended June as compared to the same quarter a year ago, on the back of healthy earnings by its subsidiary companies.

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Revenue from operations during the quarter advanced 14 percent year-on-year (YoY) to Rs 15,888 crore, up from Rs 13,949 crore.

Its wholly-owned subsidiary, Bajaj Housing Finance Ltd (BHFL) recorded a growth of 96 percent in profit after tax during the June 2022 quarter. Of the other material subsidiaries, Bajaj Allianz General Insurance Company (BAGIC) recorded a healthy growth of 25 percent in gross written premium, Bajaj Finserv said.

Also read: Bajaj Finserv stock jumps 7% as board to consider stock split proposal

The Board of Directors of Bajaj Finserv also approved sub-division of equity shares of face value Rs 5 each. It will be followed by bonus issue of one share for every share held by shareholders. This is subject to shareholders' approval, the company said.

The company further added that it will have to amend the capital clause of its memorandum of association, subject to shareholder approval.

Also read: Explained: How does stock split affect investors

As a result of the stock split, the company's authorised share capital will increase to one billion equity shares with a face value of Re one. Shares will have the same face value and be paid up and subscribed to a total of 9.64 crore shares.

The company intends to complete the necessary corporate action on or before 26 September 2022, subject to necessary approvals.

The company and its subsidiaries have grown significantly, in terms of business and performance, over the years. Among its peers, the share price of the company is one of the highest while having one of the smallest capital bases. As and when the stock price rises further, it will be increasingly difficult for small potential shareholders to partake in the company's future," said Bajaj Finserv in its regulatory filing.