Bajaj Auto buyback: Date, expected buyback price, issue size, number of shares and more—All you need to know

Bajaj Auto buyback price: The Board of Directors of Bajaj Auto will meet on June 27 to deliberate on the proposal for buyback of equity shares of the company. "We wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Monday, 27 June 2022, inter-alia to further deliberate on the proposal for buyback of fully paid-up equity shares of the Company," the company said in an exchange filing on June 22 . 

Earlier, the company had deferred the buyback plan in the meeting held on June 14. "In the course of today's deliberations, the Board asked for some more dimensions of the buyback to be explored. Given that the meeting was time bound, the subject was deferred until such dimensions were explored and advised to the Board," it had said while postponing the buyback plan.  

The company is coming with a buyback after 22 years. Bajaj Auto had carried a buyback of up to 1.82 crore equity shares at Rs 400 per share in 2000. 

Bajaj Auto buyback expected price, size 

Meanwhile, the outcome of the Board meeting on buyback plan is yet to come, Zee Business research team brings you an insight into expected buyback price, number of shares on offer and more.  

As per Zee Business research, the buyback of the homegrown two-wheeler major is expected in the range of Rs 4300-4500. Bajaj Auto buyback expected size is pegged at Rs 4750-6950, which comes out at 3.6% to 5.5% of the current equity in circulation.  

Bajaj Auto buyback detailed report | Watch 

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What is a share buyback?  

A share buyback is a corporate action by a company to buy back its own outstanding shares from its existing shareholders usually at a premium to the prevailing market price. Share buybacks are planned to reduce the number of shares in circulation, hence increasing the share value and the earnings per share (EPS). 

Meanwhile, shares of Bajaj Auto gained nearly one per cent in Friday's intraday trade at Rs 3841.55 per share on the BSE.  

Bajaj Auto Ltd reported 10% growth in net profit for the March 2022 quarter at ₹1,469 crore as against ₹1,332 crore in the corresponding quarter of the previous fiscal.