The board of (bajaj auto share price) Limited has approved a bid proposal for a ₹4,000 crore buyback, the automaker’s largest share repurchase in several years.
The exchange filing from Monday states that the Chakan-based company intends to repurchase 40 lakh fully paid equity shares at a value of ₹10,000 each, or ₹4,000 crores, at an annotated value of ₹10. The buyback amounts to 1.41% of the total equity bajaj auto share price held by the company in volume terms. Value-wise, as of March 31, 2023, it represents 14.49% of free reserves and 16.33% of the total paid-up equity share capital.
Alara Capital’s Jay Kale said, “The impact on per-share earnings is more significant, even though the buyback amount is good at a 30% premium to the current market price.” Famous investor Deven Choksi, who indirectly alluded to the promoters’ stake in the business through a WhatsApp message, praised the buyback as well.
The promoters of bajaj auto share price held 54.94% of the equity, according to the exchange filing, while the public held 21.18% of the shares. The ownership of the shares also includes mutual funds and foreign investors.
According to the exchange filing on Monday, the Pune-based Chakan company fully paid for 40 lakh equity shares at their annotated value of ₹10; they intend to repurchase the bajaj auto share price for ₹10,000 apiece, for a total of ₹4,000 crores. This amounts to 1.41% of the total equity shares held by the company in terms of volume. Value-wise, as of March 31, 2023, it represents 14.49% of free reserves and 16.33% of the total paid-up equity share capital.
Undoubtedly, this is bajaj auto share price second share repurchase in recent memory. Through an open market transaction, the company repurchased shares valued at ₹2,500 crores in July 2022, at a price of ₹4,600 per share.
While the benchmark Sensex closed at 71,355.22 points on Monday, down 0.93%, bajaj auto share price on the Sensex increased by 0.25% to reach ₹6,985.70.
