Bajaj Auto Board Approves ₹4,000 Crore Share Buyback at ₹10,000 per Share

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"Bajaj Auto Greenlights ₹4,000 Crore Share Buyback at ₹10,000 per Share: What Investors Need to Know"


In a strategic move to enhance shareholder value, Bajaj Auto, a key player in the two and three-wheeler industry, recently announced its board's approval for a share buyback program totaling ₹4,000 crore. The shares will be priced at ₹10,000 each, presenting a significant premium of 43% compared to the last closing price.




Key Points:

Buyback Details:

Bajaj Auto plans to acquire 40 lakh shares through the tender route, representing 1.41% of its outstanding shares.
The buyback comes at a premium of 43% over the recent closing price, reflecting the company's confidence in its intrinsic value.
Shareholder Participation:

Promoters of the company, currently holding a stake of 54.94%, will actively participate in the buyback, signaling their commitment to the company's growth.
Board Approval and Buyback Committee:

The board's approval on January 8, 2024, marks the company's second share repurchase program.
A Buyback Committee has been formed to oversee and execute all necessary actions related to the buyback.

Financial Implications:

The share buyback accounts for 16.33% and 14.49% of the total paid-up equity share capital and free reserves, respectively, as per audited financial statements for the year ended March 31, 2023.

Stock Performance:

Bajaj Auto's stock witnessed an all-time high of ₹7,084 last week when the company hinted at the board meeting for the share buyback.
The buyback price reflects a 43% premium over the current market price, offering a lucrative opportunity for investors.

Previous Buyback Success:

This marks the second instance of Bajaj Auto initiating a share repurchase program. In July 2022, a buyback of ₹2,500 crore was executed at ₹4,600 per share.

Market Reaction:

Dalal Street is expected to react positively to the buyback announcement, considering the substantial premium and the company's strong market position.
In conclusion, Bajaj Auto's decision to proceed with a significant share buyback underscores its commitment to delivering value to shareholders. Investors are likely to closely monitor the developments, and the buyback is poised to contribute to the overall market sentiment.

[Disclaimer: The information provided is for informational purposes only and should not be considered as financial advice.]

Bajaj Auto
Share Buyback
Financial Strategy
Stock Performance
Dalal Street
Promoter Participation
Market Sentiment
Premium Pricing
Buyback Committee
Equity Share Capital

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