Bajaj Auto’s Rs 4,000-crore buyback offer received a strong response from investors. According to data from the BSE, the offer was oversubscribed by 6.89 times. The buyback, which commenced on March 6, concluded on Wednesday.
The company declared its plan to repurchase up to 40 lakh shares, each with a face value of Rs 10. In January, Bajaj Auto announced its buyback plan of Rs 10,000 a share, a 12.6% premium compared to the share price prior to the announcement of the offer.
Bajaj Auto had bought back shares at Rs 2,500 crore in June 2022, offering shares at a price of Rs 4,600 per share. Since then, the stock has nearly doubled in value, witnessing almost 100% returns, reaching a new 52-week high of Rs 9,025 on March 8, 2024.
For small shareholders (that is residents holding nominal share capital up to Rs 2 lakh), the buyback entitlement stands at seven shares for every 27 held.
The company declared the buyback of shares through the tender route. Shareholders who were on the company’s records as of February 29, 2024 (record date), are eligible to participate in the buyback.
Bajaj Auto share performance in last one year
Bajaj Auto had bought back shares at Rs 2,500 crore in June 2022, offering shares at a price of Rs 4,600 per share. Since then, the stock has nearly doubled in value, witnessing almost 100% returns, reaching a new 52-week high of Rs 9,025 on March 8, 2024.
On March 13, Bajaj Auto’s stock closed at Rs 8,360, nearly unchanged from the previous close, outperforming the Nifty50 benchmark, which experienced a 1 percent decline. Since the buyback announcement, the stock has witnessed a nearly 7% gain. Over the past year, it has surged by an impressive 121%, securing the second-best performer position on the Auto index after Tata Motors.
In the last week, the stock has decline over 2%, while over the one-month and six-month periods, gains stand at 2.73% and 72%, respectively. Year-to-date returns are at 23.92%, but the stock has delivered an astonishing 122% return over the last 12 months.