Bajaj Auto has scheduled February 29 as the record date for its Rs 4,000 crore share buyback program, as per its filing on Friday. The company had revealed its intention to repurchase shares from shareholders on January 8.
As part of the offer, Bajaj Auto plans to acquire 40 lakh fully paid-up equity shares at Rs 10,000 per share. However, the total buyback amount is capped at Rs 4,000 crore.
On the BSE, Bajaj Auto Ltd’s shares closed at ₹8,357.00, marking a gain of ₹236.40 or 2.91%.
Auto Bajaj Buyback 2024 Detail
| Issue Period | |
| Security Name | Bajaj Auto Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 4,000,000 (16.33 % of Total number of equity Shares) |
| Issue Size (Amount) | ₹4,000.00 Crores |
| Buyback Price | ₹10000 per share |
| Face Value | ₹10 per share |
| Listing At | BSE, NSE |
Contextual Information
Founded in 1945, Bajaj Auto Limited, headquartered in Pune, India, is a multinational automotive manufacturer. Initially famed for its scooters, the company expanded its portfolio to include motorcycles and three-wheelers. Bajaj Auto offers a diverse range of motorcycles, catering to various market segments, including popular models like the Pulsar series, Dominar, Avenger, and Platina.
The company exports its two-wheelers to regions such as Africa, Latin America, the Middle East, and Southeast Asia, demonstrating its global presence.
Bajaj Auto is renowned for its emphasis on innovation and technological progress. It has introduced features like DTS-i (Digital Twin Spark Ignition) technology in motorcycles, aiming to enhance fuel efficiency and performance.
Notably, Bajaj Auto achieved a market capitalization of INR one trillion, making it the first two-wheeler and three-wheeler company globally to do so. It remains the most valuable company in these segments worldwide.
Reasons for the Issuance
The company’s financial strategy focuses on sustainable growth and maximizing shareholder returns. With strong business growth, cash flow, and a healthy balance sheet, it can reward shareholders while retaining capital for future investments. The buyback demonstrates the company’s dedication to shareholders, enhancing earnings per share and return on equity by efficiently returning surplus cash.
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