Bajaj Auto board authorizes share buyback of up to Rs 2,500 crore, share up 0.67%

A share repurchase amounting to up to Rs2,500 crore, or 9.61% of the total paid-up share capital, has been approved by the board of directors of Bajaj Auto, the company announced on Monday.

Bajaj Auto stated in a filing to the BSE that a buyback price not to exceed Rs4,600 had been approved.

The buyback price is higher by 20.64% over the closing price of Rs3,812.80 on Friday.

The business stated that the share repurchase will be done in the open market using a stock exchange method and would be for current shareholders only, excluding promoters, promoter groups, and anyone in control of the company.

According to the statement, it would account for 8.71% of the free reserves, including the securities premium account.

The indicative maximum number of equity shares proposed to be bought back, according to the company, would be 54,34,782 equity shares, or roughly 1.88% of the paid-up share capital of the Company as of 27 June 2022, subject to the market price of the equity shares being equal to or less than the maximum buyback price.

The manufacturer continued, “If the equity shares are purchased at a price less than the maximum buyback price, the actual number of equity shares to be purchased may be greater than the proposed buyback shares, but will always be limited by the maximum buyback size.

The firm stated that based on the minimum buyback size and maximum buyback price, the company would purchase a minimum of 27,17,392 equity shares. The company said it will use at least 50% of the money designated as the maximum buyback size for the buyback, or Rs1,250 crore.

The business informed BSE that the company board has established a buyback committee and has given it authority to carry out any acts, deeds, matters, or things that it may, in its sole discretion, deem necessary, expedient, or proper in connection with the buyback.