Bajaj Auto's board of directors has given the green light for a share buyback program amounting to Rs 4,000 crore, with shares priced at Rs 10,000 each. This rate represents a significant premium of 43% over the last closing price, with Bajaj Auto shares concluding at Rs 6,985 on Monday, marking a 0.25% increase.
The buyback initiative will involve the purchase of 40 lakh shares through the tender route, constituting 1.41% of Bajaj Auto's outstanding shares. As per Regulation 5 (via) of the Buyback Regulations, the Board or Buyback committee retains the flexibility to adjust the buyback price and alter the number of equity shares to be repurchased until one working day before the record date, provided there is no change in the buyback size.
A Buyback Committee has been formed by the Board, with delegated powers to execute necessary actions in connection with the buyback. The entire process, including the adjustment of buyback terms, is subject to approval by shareholders through a special resolution via a postal ballot.
Detailed information, including the process, timelines, and other relevant details, will be disclosed in the public announcement and letter of offer, following the guidelines laid out in the Buyback Regulations. This move reflects Bajaj Auto's strategic decision to enhance shareholder value and signifies confidence in the company's future prospects.
(With Agency Inputs)
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