Bajaj Auto, subsequent to its Board meeting held on Monday, has announced that the company has approved the buyback of equity shares, aggregating up to Rs 2500 crore, representing 9.61% of the total paid-up share capital.
The automaker has approved the buyback of paid-up shares at a price not more than Rs 4,600 per share.
The company will carry out the buyback from existing shareholders (except promoters, promoter group and persons in control of the Company) from the open market.
“Subject to the market price of the equity shares being equal to or less than the Maximum Buyback Price, the indicative maximum number of Equity Shares proposed to be bought back, would be 54,34,782 equity shares (Proposed Buyback Shares), comprising approximately 1.88% of the paid-up share capital of the Company as of June 27, 2022,” said the company.
“If the equity shares are bought back at a price below the maximum buyback price, the actual number of equity shares to be bought back could exceed the proposed buyback shares, but will always be subject to the maximum buyback size.”, the statement added.
“The company will utilise at least 50% of the amount earmarked as the maximum buyback size for the buyback i.e. Rs 1,250 crore (minimum buyback size). Based on the minimum buyback size and maximum buyback price, the company would purchase a minimum of 27,17,392 equity shares.” said the automaker.