Bajaj Auto witnessed a 5 percent jump in share price on January 9 following the company’s announcement of an enticing share buyback offer at Rs 10,000 per share. Despite the allure of the buyback price, Nuvama calculations suggest that most retail shareholders may not benefit significantly, as the modest size of the offer is anticipated to result in an acceptance ratio below 10%.
The share buyback revelation propelled the stock to a 5 percent increase at the opening on January 9. However, with the stock already experiencing an uptrend since the buyback announcement, UBS, a brokerage firm, has issued a ‘sell’ call on Bajaj Auto. The firm foresees a substantial portion of the buyback benefits flowing towards the promoters.
As of 10:11 am, the shares continued their positive trajectory, trading 2.04% higher at ₹7,126.00. Investors are closely monitoring the developments surrounding the buyback and its potential impact on shareholder returns.
