Bajaj Auto gets board's nod for Rs 2,500 crore share buyback. Key details to know

Homegrown auto major Bajaj Auto on Monday informed that its board has given its approval for share buyback of up to Rs 2,500 crore at a price not exceeding Rs 4,600 per unit.

The share buyback price is a 20.64 per cent premium to Friday's closing price of Rs 3,812.80 per unit.

The company’s board earlier this month had deferred a decision on share buyback proposal, and later decided to meet on June 27 to further deliberate on it.

The company in an exchange filing said, “… the board of directors of the company at its meeting held today has approved the proposal for buyback of the fully paid up equity shares of the company having a face value of Rs 10/- each from the existing shareholders of the company from open market through stock exchange mechanism at a price not exceeding Rs 4,600/- per equity share and such aggregate amount, 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 of the company."

Bajaj Auto further said that indicative maximum number of shares proposed to be bought back, would be 54,34,782 equity shares (proposed buyback shares), comprising approximately 1.88 percent of the paid-up share capital of the company as of 27 June 2022.

"The company will utilise at least 50 percent of the amount earmarked as the maximum buyback Size for the Buyback i.e. Rs 1,250 crore (minimum buyback size). Based on the minimum buyback size and maximum buyback price, the company would purchase a minimum of 27,17,392 equity shares," it added.

The company said the share buyback is for existing shareholders, except for promoters, promoter groups and persons in control of the company and would be carried out in the open market through stock exchange mechanism.