Bajaj Auto to buy back shares worth Rs 2,500 crore

The board of directors of the company, at its meeting held on Monday, approved the proposal for buyback of the fully paid up equity shares of the company.

Published: 27th June 2022 05:02 PM  |   Last Updated: 28th June 2022 08:05 AM   |  A+A-

Bajaj Auto. (Photo | PTI)

Bajaj Auto. (Photo | PTI)

By Express News Service

NEW DELHI: After 22 years, Bajaj Auto is going for a share buyback. The Pune-based automaker will be spending a maximum of Rs 2,500 crore for buying back its equity shares from open market. It will offer a maximum offer price of Rs 4,600 per share for buying nearly 1.88 % of the paid-up share capital of the company as of June 27. Bajaj Auto’s share prices on Monday closed 1.29% higher at Rs 3,862.

The amount also represents 9.61% and 8.71% of the aggregate of the total paid-up share capital and free reserves (including securities premium account) respectively, of the Company based on the latest audited financial statements as of March 3 I, 2022 ( on a standalone and consolidated basis, respectively).  

According to a statement issued by Bajaj Auto, the indicative maximum number of equity shares proposed to be bought back would be 54,34,782, comprising nearly 1.88% of the paid-up share capital of the company as of June 27, 2022.

On June 14, the company’s board had deferred a decision on its proposed share buyback citing further deliberations were required on the proposal. Now that Bajaj Auto is going ahead with a buyback plan, it would be a first in 22 years. The company had in September 2000 made an offer to buyback about 18 million shares at a price of Rs 400 per share.

Ashwin Patil, senior research analyst at LKP Securities, while giving a buy rating to the stock said it may not reach those levels by the time the buyback offer closes. 



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