Bajaj Auto Share Buyback has unveiled a Rs 4,000 crore share buyback program at an impressive Rs 10,000 per share. Bajaj Auto, a major player in the two and three-wheeler industry, has unleashed a game-changing plan with a massive Rs 4,000 crore share repurchase program at Rs 10,000 per share! This extraordinary move, approved by the board on January 8, marks a whopping 43 percent premium over the last closing price, igniting excitement in the market. This strategic initiative, marked by a significant premium, signals confidence in the company’s financial strength and growth prospects.
In a surprising twist, not only will Bajaj Auto acquire 40 lakh shares via the tender route, representing 1.41 percent of its outstanding shares, but even the company’s promoters are poised to join the buyback frenzy. With their current 54.94 percent stake, their participation amplifies the confidence in Bajaj Auto’s potential.
To fuel this mammoth buyback, a dedicated Buyback Committee has been established, empowered to take all necessary measures for its success. However, the ultimate green light hinges on the shareholders’ nod via a special resolution through a postal ballot, with finer details and record dates yet to be revealed.
This isn’t Bajaj Auto’s first rodeo in the buyback arena. In 2022, they executed a similar move, albeit on a smaller scale, buying shares worth Rs 2,500 crore at Rs 4,600 each. But this time, it’s a whole new ball game – almost double the scale, indicating the company’s financial prowess and commitment to rewarding shareholders.
In an exclusive statement to CNBC TV18, Rajiv Bajaj, the company’s Managing Director, hinted at a buyback of epic proportions. His projection? A staggering Rs 20,000 crore cash balance by the end of the fiscal year 2024, all fueled by Bajaj Auto’s stellar 2023 performance, setting the stage for monumental growth.
The market already reacted to this bombshell news: Bajaj Auto’s stock price closed at Rs 6,980 on January 8, showing a modest change from the previous close. However, it outperformed the Nifty 50, which dipped by 1 percent. Since the buyback announcement, the stock has surged by nearly 5 percent. Over the past year, it’s soared by a whopping 93 percent, securing the second-best position on the index, following only Tata Motors.
This daring financial move by Bajaj Auto speaks volumes about its proactive approach to wealth management and unwavering dedication to elevating shareholder value. The anticipation is palpable – this buyback’s success could reshape the stock’s trajectory and fortify investor trust.
Bajaj Auto’s bold Rs 4,000 crore buyback, at an impressive Rs 10,000 per share, underscores its financial prowess and forecasts an exciting future. With stakeholders eagerly awaiting the shareholders’ seal of approval, all eyes are on this high-stakes game changer in the automotive industry.
