Bajaj Auto Announces Share Buyback
board of Bajaj Auto on 27th June 2022 approved the proposal for the buyback
of the company’s share. The price of the buyback is Rs. 4,600 per share. The buyback
shall be done via open market through stock exchange mechanism. The company
clarified that the buyback of Bajaj Auto shares by the company shall not exceed
Rs. 2,500 crore i.e. 9.61 % and 8.71% of the total paid up share capital and
free reserves as of March 2022.
proposed shares to be bought back by the company would be 54,34,782 equity
shares i.e. 1.88 percent of the paid-up share capital of the Company as of 27
June 2022. The number of shares proposed to be bought back can exceed if the
equity shares are bought at a price lower than the maximum buyback price.
However, the maximum shares bought would not exceed Rs. 2,500 crore. i.e. the maximum buyback size.
on the minimum buyback price and maximum buyback price Bajaj Auto will utilize
at least 50% of the amount i.e. Rs. 1,250 crores for purchasing a minimum of 27,17,392
Summary of Bajaj Auto Buyback
· Buyback price is fixed at Rs. 4,600
· Maximum buyback size of Rs. 2,500 crore
· Buyback to be done through open market
· At least 50% of the buyback proceeds i.e. Rs.
1,250 shall be utilized
· Maximum buyback size would be 9.61% of the
total paid up capital of the company