Bajaj Auto Approves ₹4,000 Crore Share Buyback at ₹10,000 Per Share, Promoters to Participate

Bajaj Auto

January 9, 2023

New Delhi, India

Bajaj Auto’s Bold Move

Bajaj Auto, a key player in the two and three-wheeler industry, has greenlit a ₹4,000 crore share buyback program, setting the buyback price at ₹10,000 per share. This move comes with a notable 43% premium over the last closing price, signalling confidence and value for investors.

Details of the Buyback:

The board’s approval encompasses the acquisition of 40 lakh shares, equivalent to 1.41% of Bajaj Auto‘s outstanding shares. Promoters, currently holding a 54.94% stake, will actively partake in the buyback.

Financial Impact and Committee Formation:

The buyback represents a significant portion of the company’s total paid-up equity share capital and free reserves. A dedicated Buyback Committee has been formed to oversee the process, ensuring transparency and efficiency.

Previous Buyback and Market Response:

This marks Bajaj Auto’s second share repurchase initiative. In July 2022, a buyback of ₹2,500 crore was executed at ₹4,600 per share. The market responded positively, with the stock reaching an all-time high of ₹7,084 following the recent disclosure of the buyback intention.

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Current Stock Performance:

As of the latest update, Bajaj Auto’s shares is doing at Rs. 7,117 on the National Stock Exchange, indicating a marginal 0.1% increase from the previous close.

Strategic Implications and Dalal Street Expectations:

The decision to offer a substantial premium over the market price demonstrates a strategic move to enhance shareholder value. Dalal Street is expected to welcome this development, anticipating positive market reactions.

Also Read: Indian Mutual Fund Industry Surpasses Rs 50 Trillion AUM Milestone in December 2023


Bajaj Auto‘s bold move to undertake a share buyback at an attractive premium reflects confidence in its financial position and growth prospects. Investors and industry watchers will keenly observe the market response in the coming weeks.

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