Bajaj Auto Ltd on Monday approved buyback of shares worth INR 4,000 crore through the tender offer route.
The two-wheeler major will repurchase up to 40,00,000 shares for a price not exceeding INR 10,000 a share, the company said in an exchange filing.
Dalal Street is set to rejoice this news, as the buyback price is at a whopping 43% premium to the current market price. On Monday, shares of Bajaj Auto ended at INR 6,983.85 on the National Stock Exchange, up 0.1% from the previous close.
The buyback size represents 1.41% of the total number of equity shares of the company. Currently, promoter and promoter group entities hold 54.94% stake in Bajaj Auto, and foreign institutional investors hold 14.72%.
Last week, when Bajaj Auto had announced that its board would meet to consider share buyback, the stock scaled a lifetime high of INR 7,084. This is the second time Bajaj Auto will be conducting a share repurchase progamme.
In July 2022, the two-wheeler maker had bought back shares worth INR 2,500 crore. The buyback was then done at INR 4,600 a share.
Since the first share buyback, the share value of the automaker has more than doubled.
The last time Bajaj Auto had done the share buyback through the open market, however, this time it will be through the tender offer route.
