Bajaj Auto to buyback 40 lakh shares on March 06

Bajaj Auto has announced a significant share buyback plan, which has attracted considerable attention from investors and market observers alike. The plan involves the buyback of 40 lakh shares, representing 1.41 percent of the company's outstanding shares, at a striking price of Rs 10,000 per share. This buyback, amounting to an aggregate of Rs 4,000 crore, showcases Bajaj Auto's robust financial health and its commitment to returning value to its shareholders.

For retail investors, Bajaj Auto has reserved 15 percent of the total tender offer, with Axis Securities highlighting two scenarios regarding the acceptance ratio. The projected minimum acceptance ratio could be as low as 4 percent if all participants tender 100 percent of their shares. However, with a 30 percent participation rate from small retail holders, the minimum acceptance ratio could impressively reach 13 percent.

The decision to execute this buyback via the tender offer route underlines Bajaj Auto's strategy to enhance shareholder value. Notably, this move follows a previous buyback in July 2022, where the company repurchased shares worth Rs 2,500 crore at Rs 4,600 each. With Bajaj Auto's Managing Director Rajiv Bajaj highlighting a strong financial performance in 2023 and an anticipated robust cash balance of Rs 20,000 crore by the end of the financial year 2024, the company's outlook appears positive.

Investors interested in participating in the buyback need to pay attention to the record date that has been done for February 29, 2024, to determine their eligibility for the offer. Detailed steps on how to tender shares through platforms such as Zerodha have been provided, ensuring investors can navigate the process smoothly.