Bajaj Auto approves share buyback
The company in its March quarter earnings said that it continues to face supply chain challenges, which impacted sales of motorcycles and commercial vehicles.
Bajaj Auto’s Board of Directors has approved the proposal for buyback of the fully paid up equity shares at a price not exceeding Rs 4,600 per equity share and for an aggregate up to Rs 2,500 crore representing 9.61 percent and 8.71 percent of the aggregate of the total paid-up share capital and free reserves (including securities premium account). The auto major's board earlier this month had deferred a decision on its proposed share buyback.
This is the first buyback announced by the company since 2000 wherein it had offered 1.8 crore equity shares at a price of Rs 400 per share. The company in its March quarter earnings said that it continues to face supply chain challenges, which impacted sales of motorcycles and commercial vehicles.
Analysts say buybacks are a more tax-effective means of rewarding shareholders if company management perceives it as undervalued or when company promoters consolidate their stake in the company. This is more relevant in the case of stocks that have shown a sharp decline despite no apparent fundamental flaws.
Also read
Bajaj announces share buyback plan
RELATED ARTICLES
Uniproducts India targets 15% growth till FY2027, eyes new EV OEMs for NVH parts
The Noida-headquartered company, which is a leading manufacturer of roof liners, floor carpets, sound insulation materia...
Ford to build more EV software capability at Chennai tech hub
Ford Business Solutions India, which currently employs 12,000 personnel set to add 3,000 more; Ford, which is known to b...
ASK Automotive to set up JV with Aisin to sell aftermarket parts for cars
Ask Automotive will have 51% of the equity of the joint venture to be set up with Aisin Asia (Thailand) Company and Aisi...