Bajaj Auto Ltd’s board has given the nod for a share buyback amounting to Rs 4,000 crore, set at Rs 10,000 per share through the tender offer route. This decision, approved on Monday, represents a significant move by the two- and three-wheeler company to repurchase up to 4,000,000 fully paid-up Equity Shares with a face value of Rs 10 each, constituting 1.41% of the total Equity Shares.
Closing 0.25% higher on Monday at Rs 6,985.7 on BSE, the share buyback plan is substantial, making up 16.33% and 14.49% of the total paid-up equity share capital and free reserves (including securities premium account) based on the audited financial statements for the fiscal year ended on March 31, 2023.
This strategic move comes after an impressive 88% surge in the company’s stock during 2023, marking its best performance since 2009 and surpassing the 47.6% rise in the Nifty Auto index. Bajaj Auto will unveil its third-quarter results on January 24. It’s worth noting that the motorcycle manufacturer executed a share buyback of Rs 2,500 crore between July and October 2022.
In continuation of our communication dated 03 January 2024, and as per Regulation 30 of the SEBI Listing Regulations, we hereby inform you that the Board of Directors of the Company, in its meeting on Monday, 08 January 2024, has given the green light to a buy-back proposal. This involves the repurchase of up to 4,000,000 fully paid-up Equity Shares with a face value of ₹10/- each, amounting to 1.41% of the total Equity Shares. The buy-back will be executed at ₹10,000 per Equity Share, payable in cash, not exceeding a total consideration of ₹4,000 crores (excluding transaction costs).
This initiative represents 16.33% and 14.49% of the total paid-up equity share capital and free reserves, respectively, based on the audited financial statements for the financial year ended on March 31, 2023. The buy-back will be carried out through the “Tender Offer” route as prescribed under the Buyback Regulations.
In accordance with Regulation 5(via) of the Buyback Regulations, the Board/Buyback committee retains the flexibility, until one working day before the record date, to adjust the Buyback price and the number of Equity Shares to be repurchased, ensuring no change in the Buyback Size.
A dedicated Buyback Committee has been formed, empowered to undertake all necessary actions concerning the Buyback. The entire process is subject to the shareholders’ approval via a special resolution through a postal ballot. Detailed information, including the public announcement and letter of offer outlining the process and timelines, will be released in compliance with the Buyback Regulations in due course.
