Bajaj Auto to consider buyback of shares

10 Jun 2022 , 10:16 AM

In a notification to the stock exchanges, BSE and NSE on Thursday, the automobile manufacturer said that it will discuss the buyback of paid-up equity shares.

The move will be discussed at the board of directors meeting on June 14.The company’s last buyback was in 2000 when shareholders approved the purchase of up to 18 million equity shares at Rs 400 each.Since FY08, Bajaj has paid dividends to shareholders, with the amount increasing year after year, from Rs 20 per share in FY08 to Rs 140 at the end of FY22.

According to Capitaline data, the company’s total dividend distribution during the same period increased from Rs 289 crore to Rs 4,051 crore at the end of FY22.Bajaj Auto shares closed higher at Rs 3,876.90 on the BSE on Thursday, up 2.2% compared to Wednesday’s close.

Share buybacks are usually seen in a positive manner and show the public that the management itself is quite confident in the growth that they will achieve in the future. Companies in the IT sector are known to conduct buybacks quite frequently. The most recent buyback in the auto sector was conducted by Eicher Motor in March 2009.