Bajaj Auto Share Buyback: Bajaj Auto Limited has announced that its board has approved a share buyback programme of up to Rs 2,500 crore from the open market at a price not exceeding Rs 4,600 per equity share.
The decision was taken at a meeting of the board of directors of the company on Monday. As per the approval, the board of the Indian multinational automotive manufacturing company has cleared the proposal for buyback of the fully paid up equity shares with a face value of Rs 10 each from existing shareholders.
The buyback programme will not include the promoters and promoter group of the company.
The buyback will be carried out at a price not exceeding Rs 4,600 per equity share and for an aggregate amount of up to Rs 2,500 crore. This represents 9.61 per cent and 8.71 per cent of the aggregate of the total paid-up share capital and free reserves (including securities premium account), Bajaj Auto said in a regulatory filing.
A share buyback is a process when a company buys its own outstanding shares to reduce the number of shares available in the open market. The company has formed a buyback committee to carry out the task.
Earlier on June 14, the company's board had deferred a decision on its proposed share buyback citing further deliberations were required on the proposal.
At 1 PM, the scrip was trading 1% higher at Rs 3,898 on the NSE from its previous closing of Rs 3,861 apiece. In the last five sessions, Bajaj Auto's share price has jumped more than 5%.
The Pune-headquartered company manufactures motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of the Bajaj Group.