Bajaj Auto Board Set to Consider Share Buyback on January 8; stock zooms ~5%

3 Jan 2024 , 03:39 PM

Bajaj Auto stock rose more than 5% on January 3 to surpass Rs 7,000 for the first time, after reports that the Bajaj Auto board may explore a share buyback option on January 8.

Bajaj Auto, in a regulatory filing, announced its intention to ‘discuss a proposal for the buyback of fully paid-up equity shares of the Company and related matters, as per the provisions of the Companies Act, 2013 (including the rules and regulations under it), the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended, and other relevant laws.’

According to Bajaj Auto, the repurchase is an economical approach to return funds to shareholders. He said that the reason is that they had an exceptional quarter. While Bajaj did not reveal specifics, he did say that given the company’s performance this year, the repurchase will be greater than in the past. ‘Whenever cash on books crossed Rs 15,000 crore we look to give back to investors,’ he said.

At around 3.26 PM, Bajaj Auto was trading 4.35% higher at Rs 6,955.05 per piece, against the previous close of Rs 6,665.05 on NSE.

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