Bajaj Auto to buyback shares worth Rs. 2.5K cr at Rs. 4,600 each

 

Bajaj Auto to buyback shares worth up to Rs. 2,500 crore. The two-wheeler giant to buyback 5.43 million shares aggregates up to 1.88 per cent of its paid-up share capital through the open market at Rs 4,600 each. 54% of the share is owned by the promoting group.  This is not the first time Bajaj is buying back the shares, in 2000, shareholders agreed to the buyback for Rs.400 each of 18 million equity shares.
These purchases act as a positive signal about the management's ability and confidence in the dynamics of business.
Based on the minimum payback price and minimum payback size the company to buy at least 27,17,392 ( around 2.7 million) equity shares. Bajaj to use 50 per cent of the amount earmarked  I.e. Rs. 1,250 crores.
If the payback is below the maximum payback price then the number of equity shares bought will be increased. However, it is always subject to a maximum payback price.
" The company at its meeting held on Monday has approved the proposal for buyback of the fully paid-up equity shares with a face value of Rs. 10 from existing shareholders. It would be from the open market through the stock exchange mechanism at a price not exceeding Rs. 4,600 per equity share " it said in a statement. The board Constituted a committee and decided to buy back the shares. Rajiv Bajaj, CEO of Bajaj Auto, said that it is the policy of returning up to 90 per cent of the annual profit to shareholders.
Dividends were paid, each year  from FY08, by the company from Rs. 20 per share in FY08 to Rs. 140 at the end of FY22.