Shares of Bajaj Auto Limited traded 1 per cent higher to Rs 7,043 on January 8 as the company’s board of directors are set to meet and consider a share buyback proposal.
In a regulatory filing last week, Bajaj Auto informed, “The meeting of the Board of Directors of the Company is scheduled on 08/01/2024, inter alia, to consider and approve a proposal to buyback of fully paid-up equity shares of the Company and other matters necessary and incidental thereto.”
If approved, then it would be the second Bajaj Auto buyback in the last two years. The auto major had earlier declared share buyback in July 2022 at ₹4,600 per equity share. The previous Bajaj Auto share buyback size was ₹2,500 crore done through the open market route.
Rajiv Bajaj, managing director of the Pune-based two-wheeler maker Bajaj Auto has indicated the buyback of shares this time is likely to be far bigger. The company’s board will decide whether the buyback will be done through a tender offer or the open market.
In an interaction with CNBC TV-18, Rajiv Bajaj, the managing director of the company, said that the buyback would be far bigger this time. Bajaj further said that the company has had an excellent 2023 and will end the financial year 2024 with cash of Rs 20,000 crore.
The Bajaj Auto MD said that whenever the company has more than Rs 15,000 crore worth of cash on its books, he expects to give back over 70 percent to the investors.
Shares of the company closed at Rs 6,978, up over a percent during the last trading session. It pared gains after it touched a record high of Rs 7,084 on January 5.
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