NEW DELHI: Two-wheeler and three-wheeler maker Bajaj Auto has deferred its share buyback plan, which was brought before its board for consideration on Tuesday. “We wish to inform you that the board of directors of the company at its meeting held today i.e. June 14, 2022, has decided that further deliberations are required in order to make a decision on the proposal of buyback, and accordingly deferred the matter,” said Bajaj Auto in a regulatory filing.
On June 9, the Pune-based company informed stock exchanges that its board will consider a proposal for the buyback of fully paid-up equity shares at a meeting to be held on Tuesday. Following its deferment of the plan, the share price of Bajaj Auto fell 7.13% to Rs 3,603.75 before closing at Rs 3,684.40 apiece on the BSE, down 5.06% from the previous day's closing.
Currently, Religare Broking has a buy call on Bajaj Auto with a target price of Rs 4,290. A share buyback is a process when a company buys its own outstanding shares to cut the number of shares available in the open market.
If it goes ahead with a buyback plan, it would be the first in 22 years. It had in September 2000 made an offer to buy back nearly 18 million shares at Rs 1,400 per share. Meanwhile, Bajaj Auto on Tuesday said Shekhar Bajaj has tendered his resignation as a non-executive director of the company due to health issues.