Bajaj Auto has announced that share buyback will open on March 06. The two-wheeler company announced the buyback plan in January for Rs 10,000 per equity share. Bajaj will be buying back 40 lakh fully paid-up equity shares for a face value of Rs 10 each via the tender route, representing 1.41% of the company’s outstanding shares.
The company did a share buyback last time in July 2022 at Rs 4,600 per share. The company is buying back for the second time in many years.
“The maximum amount required for Buyback will not exceed ₹ 4,000 Crore (Rupees Four Thousand Crore Only) excluding transaction costs, applicable taxes, other incidental and related expenses. The said amount works out to 16.33% and 14.49% of the total issued and fully paid-up equity share capital and free reserves as per audited standalone financial statements and audited consolidated financial statements of the Company, as on March 31, 2023, respectively, which is within the prescribed limit of 25% under the Act and Regulation 4(i) of the Buyback Regulations, and represents approximately 1.41% of the total issued and paid-up Equity Share Capital of the Company, as on March 31, 2023,” read an exchange filing by the company.
The company will be using free reserves for the buy-back program and will not use any kind of borrowing.