Bajaj Auto plans to buy back shares worth Rs 4,000 crore at Rs 10,000 each: Bajaj Auto has some exciting news—they’re buying back 40 lakh shares at Rs 10,000 each, and the total won’t go beyond Rs 4,000 crore. This is the second time the company, based in Chakan, Pune, is doing a buyback in just two years.
The big shots at Bajaj Auto Ltd. gave the thumbs up for a Rs 4,000-crore buyback through a tender offer. And you won’t believe it—this is the second time they’re doing this share repurchase thing in just two years!
Bajaj Auto plans to buy back shares worth Rs 4,000 crore at Rs 10,000 each
The company in Chakan, Pune, is all set to buy back a whopping 40 lakh shares, each worth Rs 10, at Rs 10,000 each. The grand total? A cool Rs 4,000 crore, as per the Monday exchange filing.
In simpler terms, the buyback means they’re taking back 1.41% of all the company’s shares. In money talk, it’s 16.33% of the total paid-up equity share capital and free reserves as of March 31, 2023.
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Jay Kale, the financial expert from Elara Capital, sees this as a great deal. He says, “The buyback amount, with a 30% bonus to the current market price, is quite impressive.” However, he does mention a concern about how it might affect the earnings per share.
Veteran investor Deven Choksey gives a big thumbs up, sending a WhatsApp message to NDTV Profit. He highlights that the big shots at Bajaj Auto own a solid 54.94% of the company, while the public holds 21.18%. Foreign investors, mutual funds, and insurers own 15% and 8.47%, respectively, as per the filing.
This isn’t the first rodeo for Bajaj Auto in share buybacks. Back in July 2022, they bought back shares worth Rs 2,500 crore at Rs 4,600 each, playing the open market game.
On Monday, Bajaj Auto’s shares went up by a tiny 0.25% to Rs 6985.70 each on the Sensex. Meanwhile, the Sensex itself ended the day with a 0.93% dip at 71,355.22 points.
