Within the final one 12 months, the inventory has gained over 93 % turning into the second-best performer on the index trailing solely to Tata Motors.
Two and three-wheeler main Bajaj Auto Ltd board on January 8 accredited a Rs 4,000 crore share buyback at Rs 10,000 apiece. That is at a premium of 43 % to the final closing worth.
The corporate will likely be shopping for 40 lakh shares by way of tender route, representing 1.41 % of Bajaj Auto’s excellent shares. Promoters of the corporate will even be collaborating within the buyback. Presently, promoters maintain 54.94 stake within the firm.
The automaker stated the Board has constituted a Buyback Committee and has delegated the facility to do all such acts, deeds, issues and issues as it might, in its absolute discretion, deem mandatory, expedient or correct in reference to the buyback.
The Buyback is topic to approval of the shareholders by the use of a particular decision by a postal poll. The file dates and different particulars will likely be introduced later.
This is Bajaj Auto’s second share buyback in as a few years. The auto main in July 2022 bought shares price Rs 2,500 crore from holders at Rs 4,600 a unit. Final week, Bajaj Auto Managing Director Rajiv Bajaj had advised CNBC TV18 that the buyback can be far greater this time.
Bajaj Auto would finish the monetary 12 months 2024 with a money stability of Rs 20,000 crore, he stated, including the corporate has had a wonderful 2023.
On January 8, the Bajaj Auto inventory closed at Rs 6,980, practically flat from the earlier shut, outperforming benchmark Nifty 50, which fell a %. The inventory has gained practically 5 % because the buyback was introduced. Within the final one 12 months, it has gained over 93 %, turning into the second-best performer on the index behind Tata Motors.
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