Bajaj Auto is set to buy back shares worth up to ₹4,000 crore, and the process will start on March 6 and conclude on March 13.
For those in the reserved category, the entitlement for the buyback is 7 shares for every 27 held on the record date. In the general category, it’s 1 share for every 82 held on the record date.
The record date for Bajaj Auto’s buyback was set on February 29, 2024. The company is opting for a share buyback through the tender route.
The buyback price is fixed at ₹10,000 per share, which is about 24% higher than Monday’s closing price of ₹8,042.75 per share.
Bajaj Auto’s board has approved the buyback of up to 40,00,000 fully paid-up equity shares with a face value of ₹10 each at ₹10,000 per equity share, totaling ₹4,000 crore.
This amount represents 16.33% and 14.49% of the total issued and fully paid-up equity share capital and free reserves, respectively, and about 1.41% of the total issued and paid-up equity share capital as of March 31, 2023.
The promoters and promoter group of Bajaj Auto, who currently hold 54.94% of the total equity share capital, have expressed their intention to participate in the share buyback. They may tender up to a maximum of 18,75,657 equity shares.
The buyback will be on a proportionate basis through the “Tender Offer” route. Bajaj Auto will request the stock exchanges, with BSE as the designated exchange, to facilitate the tendering of equity shares under the buyback.
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