According to the audited standalone and consolidated financial statements for the financial year ended March 31, Bajaj Auto’s buyback represents 16.33% of the total paid-up equity share capital and free reserves (including the securities premium account), respectively.
On Monday, Bajaj Auto’s board announced a buyback of Rs. 4,000 crore per share at a price of Rs. 10,000 per share. On Monday, the two-wheeler company reported on the BSE that the repurchase price is at a significant premium of 43% compared to the closing price.
The Pune-based company, which announced the plan after market hours, said its board had approved a proposal to buy back 4,000,000 shares, which account for 1.41% of the company’s total equity shares, at a price of Rs. 10,000 per share, payable in cash for a total consideration not exceeding Rs. 4,000 crore.
On Monday, Bajaj Auto’s board announced a buyback of Rs. 4,000 crore per share at a price of Rs. 10,000 per share. On Monday, the two-wheeler company reported on the BSE that the repurchase price is at a significant premium of 43% compared to the closing price.
The Pune-based company, which announced the plan after market hours, said its board had approved a proposal to buy back 4,000,000 shares, which account for 1.41% of the company’s total equity shares, at a price of Rs. 10,000 per share, payable in cash for a total consideration not exceeding Rs. 4,000 crore.
“This, it said, excludes transaction costs such as brokerage, filing fees, advisers/legal fees, public announcement publication expenses, printing and dispatch expenses, and applicable taxes such as buyback tax, securities transaction tax, goods and services tax, and stamp duty,” the company said.
According to the audited standalone and consolidated financial statements for the financial year ended March 31, Bajaj Auto’s buyback represents 16.33% of the total paid-up equity share capital and free reserves (including the securities premium account), respectively.
The tender offer process will be used to repurchase the share.
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According to market insiders, given the price at which Bajaj Auto will be bought back, shares of the company are likely to see a strong rally on Tuesday. It is unclear if the promoters will take part in the program.
Nearly 55% of the company is owned by promoters, while the rest is held by domestic institutions like mutual funds, insurance companies, banks, and Indian public and foreign portfolio investors.
In a buyback, a company buys its own shares from shareholders or the market, which are then gone.
