Bajaj Auto buyback 2022: Details of equity shares buyback plan announced

Bajaj Auto Shares Buyback: Bajaj Auto in its Q2FY23 result has announced that it has bought 5,712,259 number of equity shares from the stock exchange at an average buyback price of Rs 3,939.39 per share. This comprised 1.97% of the pre-buyback number of shares of Bajaj Auto. The buyback resulted in a cash outflow of Rs 2,250 crore — this excluded transaction cost and tax on buyback. 

As per its Q2 result announcement, Bajaj Auto has created a capital redemption reserve of Rs 5.71 crore, which is equal to the nominal value of shares bought back, as an appropriation from retained earnings. 

In its Q2 result announcement, Bajaj Auto declared that it has added Rs 2,450 crores of operating cash flows in the first half of the year. As of 30 Sept 2022, Bajaj Auto announced surplus funds of Rs 15,538 crores post pay-outs of almost Rs 7,000 crores towards dividend and buyback.

Earlier, Bajaj Auto's Board of Directors had on  27 June 2022, approved a proposal to buyback fully paid up equity shares of the Company having a face value of Rs  10 each from the existing shareholders. It was decided that the maximum buyback price would not exceed Rs 4,600 per equity share and a maximum buyback size of up to Rs 2,500 crore, to be completed by 3 January 2023.

Earlier on Friday, Bajaj Auto reported a 16 per cent decline in its consolidated net profit to Rs 1,719 crore for the September quarter, hit by a 25 per cent dip in overseas shipments.

The Pune-based company had posted a consolidated net profit of Rs 2,040 crore in the July-September quarter of the previous fiscal.

Total revenue from operations, however, rose to Rs 10,203 crore in the September quarter against Rs 8,762 crore in the year-ago period, Bajaj Auto said in a regulatory filing.