Bajaj Auto gets board approval for Rs 4,000 crore buyback plan; stock hits new 52-week high

9 Jan 2024 , 01:12 AM

On January 8, the board of Bajaj Auto Ltd approved a Rs 4,000 crore share buyback plan at a price of Rs 10,000 per share. This is a 43% premium over the previous closing price.

The business would acquire 40 lakh shares via the tender offer route, accounting for 1.41% of Bajaj Auto’s outstanding shares. Company promoters will also participate in the repurchase. The promoters now hold a 54.94% share in the firm.

Following this development, the company’s counter touched a new 52-week high of Rs 7,399 per share.

At around 1.07 PM, Bajaj Auto was trading 1.69% higher at Rs 7,101.80 per piece, against the previous closing price of Rs 6,983.85 on NSE.

The carmaker stated that the Board has formed a Buyback Committee and has given the authority to perform any such actions, deeds, matters, and things as it deems necessary, expedient, or suitable in connection with the repurchase.

The repurchase is subject to shareholder approval via a special resolution voted on via postal ballot. The record dates and other information will be released later.

This is Bajaj Auto’s second share repurchase in as many years. In July 2022, the automaker paid Rs 4,600 per unit for shares valued at Rs 2,500 crore.

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