Bajaj Auto Announces ₹4,000 Crore Share Buyback at Premium Rates

Bajaj Auto Announces ₹4,000 Crore Share Buyback at Premium Rates

VoM News Desk | January 8, 2024 | 10:35 PM IST | Breaking News | Follow on Google News

Bajaj Auto Announces ₹4,000 Crore Share Buyback at Premium Rates/Mint

Bajaj Auto Announces ₹4,000 Crore Share Buyback at Premium Rates

Bajaj Auto, a major player in the two and three-wheeler industry, unveiled a share buyback program amounting to ₹4,000 crore on January 8. The board’s approval for the buyback entails the acquisition of 40 lakh shares at ₹10,000 each, a 43 percent premium compared to the last closing price.

This buyback initiative represents 1.41 percent of the company’s outstanding shares. Notably, the promoters, holding a current stake of 54.94 percent in Bajaj Auto, will actively participate in this venture.

The company’s filing with the exchange stated, “The Board of Directors… has approved the proposal for buy-back of up to 4,000,000 fully paid-up Equity Shares… at a price of ₹ 10,000 (Rupees Ten Thousand only) per Equity Share payable in cash for a total consideration not exceeding ₹ 4,000 crores.”

Previously, in July 2022, Bajaj Auto conducted a share buyback valued at ₹2,500 crore, offering shares at ₹4,600 each.

This latest buyback move, providing a significant 43% premium over the current market price, is anticipated to evoke positive sentiments on Dalal Street. On Monday, Bajaj Auto’s shares concluded at ₹6,983.85 on the National Stock Exchange, displaying a minor 0.1% increase from the previous day’s close.

VoM News Desk

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