Bajaj Auto's Rs4000 Cr Buyback opens 6-Mar-24! Know the Details

Bajaj Auto's Rs4000 Cr Buyback opens 6-Mar-24
Bajaj Auto's Rs4000 Cr Buyback opens 6-Mar-24

by Tanushree Jaiswal Last Updated: Mar 05, 2024 - 03:00 pm 757 Views
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Bajaj Auto has increased its share buyback to ₹4,000 crore, starting on 6-Mar-24, and ending on 13-Mar-24. For the general category, the buyback offer is set at 1 share for every 87 owned, while the reserved category can sell back 7 shares for every 27 held as of the record date.

Bajaj Auto Shares Buyback Record Date and Strategy

The board of directors at Bajaj Auto, a leading name in the automotive sector, has set February 28, 2024, as the record date for this significant share buyback plan. This strategic decision is aimed at boosting shareholder value. The company is carefully executing this buyback through a tender offer, allowing shareholders to sell a portion of their shares back to the company at a set price within a specific period. This method demonstrates Bajaj Auto's strong financial position and its dedication to a beneficial relationship with its shareholders, aligning with the company's long-term growth.

Summary of the Bajaj Auto Shares Buyback

Detail

Information

Buyback Price

₹10,000 per share

Previous Closing Price

₹8,042.75 per share

Percentage Increase

24% over the closing price

Bajaj Auto's Share Buyback and Strategic Impact

The company's board has unanimously approved a detailed plan to buy back up to 4 million shares, each valued at ₹10, leading to a total investment of about ₹4,000 crore. As of March 2023, this buyback represents a modest but significant 1.41% of the company's total shares. It's a strategic move to alter the company's financial structure, involving 16.33% of its shares and 14.49% of its reserves, aiming to significantly increase the company's value to its shareholders. The main stakeholders of Bajaj Auto and their partners are supporting this buyback, showing their confidence in the company's future. They've agreed to sell up to 1,875,657 shares, indicating their belief in the company's potential for growth. The leading owners and their group control 54.94% of Bajaj Auto's shares. The company is organizing a share buyback that lets shareholders sell their shares back. This will be done through a special process on the stock market, with BSE as the main exchange for the buyback. On Monday, Bajaj Auto's share price rose by 2.02%, closing at ₹8,205.15 on the BSE.

To Summarize

Bajaj Auto has increased its share buyback to ₹4,000 crore, starting March 6 and ending March 13, 2024. Shareholders can participate in this buyback, which aims to enhance shareholder value. The buyback reflects the company's strong financial health and commitment to its long-term growth strategy.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

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