Bajaj Auto board approves up to Rs 2,500 crore share buyback

NEW DELHI: Bajaj Auto on Monday said its board has approved a share buyback, aggregating up to Rs 2,500 crore, representing 9.61 per cent of the total paid-up share capital.

In a filing to BSE, Bajaj Auto said it has approved a buyback price, not exceeding Rs 4,600.

The buyback price is a 20.64 per cent premium to Friday's closing price of Rs 3,812.80.

The company said the share buyback is for existing shareholders, except for promoters, promoter groups and persons in control of the company and would be carried out in the open market through stock exchange mechanism.

It would represent 8.71 per cent of the free reserves including securities premium account, it said

"Subject to the market price the equity shares being equal to or less than the maximum buyback price, the indicative maximum number of equity shares proposed to be bought back, would be 54,34,782 equity shares, comprising approximately 1.88 per cent of the paid-up share capital of the Company as of 27 June 2022," the company said..

"If the equity shares are bought back at a price below the maximum buyback price, the actual number of equity shares to be bought back could exceed the proposed buyback shares, but will always be subject to the maximum buyback size," the automaker added.

The company said it will utilise at least 50 per cent of the amount earmarked as the maximum buyback size for the buyback i.e. Rs 1,250 crore and that based on the minimum buyback size and maximum buyback price, the company would purchase a minimum of 27,17,392 equity shares.

Meanwhile, the company board has constituted a buyback committee and has delegated the power to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient or proper in connection with the buyback, the company told BSE.