Bajaj Auto Ltd, on Monday, said the company's board approved a share buyback worth ₹4,000 crore at Rs 10,000 apiece—a premium of 43 per cent from today's closing price of Rs 6,985.10.
Bajaj Auto will buy back 1.41 per cent of the company's outstanding shares. This comes to around 40 lakh shares.
This is the second time that the company is buying back shares in two years. In July 2022, Bajaj Auto bought back shares worth Rs 2,500 crore at Rs 4,600 apiece.
"We wish to inform that the Board of Directors of the Company at its meeting held today, i.e., Monday, 08 January 2024, has approved the proposal for buy-back of up to 4,000,000 fully paid-up Equity Shares of face value of Rs 10 each by the Company (representing 1.41% of the total number of Equity Shares of the Company) at a price of Rs 10,000 per equity share payable in cash for a total consideration not exceeding Rs 4,000 crore," the company said in an exchange filing, reported Business Today.
The company's shares have risen over 90 per cent in the past one year, outperforming the Nifty Auto index which rose 43 per cent during the same period.
The record date will be announced later.
