Alina
Bajaj Auto
Board Greenlights Rs 4,000-Crore Share Buyback Program at Rs 10,000 per Share
On January 8, the board of Bajaj Auto Ltd, a leading player in the two and three-wheeler industry, approved a substantial share buyback program amounting to Rs 4,000 crore, with each share priced at Rs 10,000. This represents a noteworthy premium of 43 percent compared to the last closing price.
The company intends to acquire 40 lakh shares through the tender route, equivalent to 1.41 percent of Bajaj Auto’s total outstanding shares. Notably, the promoters of the company will actively participate in this buyback initiative, and currently, they hold a significant 54.94 percent stake in the company.
To oversee the buyback process, the Board has established a dedicated Buyback Committee and has granted it the authority to undertake all necessary actions, deeds, and matters deemed necessary or expedient in connection with the buyback.
It’s important to note that the success of this buyback plan is contingent upon the approval of the shareholders through a special resolution, which will be sought through a postal ballot. The specifics, including the record dates, will be communicated at a later date.
This marks Bajaj Auto’s second share buyback in as many years. In July 2022, the automotive major executed a share buyback worth Rs 2,500 crore, acquiring shares at Rs 4,600 each. In a recent interview with CNBC TV18, Bajaj Auto’s Managing Director, Rajiv Bajaj, hinted that this buyback would surpass the scale of the previous one, indicating a significant financial move for the company.
