09-Jan-2024
2 mins read
On January 8, the board of Bajaj Auto Ltd, a leading manufacturer of two and three-wheelers, authorised a share repurchase program valued at Rs 4,000 crore. Bajaj Auto buyback price is set at Rs 10,000 per share, a 43 per cent premium over the most recent closing price. The company plans to repurchase 40 lakh shares through a tender offer, accounting for 1.41 per cent of its total outstanding shares. The company’s promoters, who currently own a 54.94 per cent stake in Bajaj Auto, will also participate in this buyback initiative.
Bajaj Auto Limited Company Details
Founded in 1945 and headquartered in Pune, India, Bajaj Auto Limited is a global leader in automotive manufacturing. Originally famed for its scooters, the company has diversified its offerings to include motorcycles and three-wheelers. Bajaj Auto’s range of motorcycles, known for catering to diverse market segments, includes renowned models like the Pulsar series, Dominar, Avenger, and Platina.
The company’s products have a strong presence in international markets, including Africa, Latin America, the Middle East, and Southeast Asia. Bajaj Auto has consistently emphasised innovation and technological development. One of its notable contributions is the DTS-i (Digital Twin Spark Ignition) technology in motorcycles, enhancing fuel efficiency and overall performance.
Bajaj Auto has achieved a significant milestone by becoming the world’s first two-wheeler and three-wheeler company to attain a market capitalisation of one trillion INR, maintaining its position as the most valuable company in its sector globally.
Company Financials of Bajaj Auto Limited (In Rs Crore)
Between the fiscal years ending March 31, 2022, and March 31, 2023, Bajaj Auto Limited experienced a revenue growth of 9.34%, while its profit after tax (PAT) saw a decline of 1.71%.
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 35,136.45 | 35,111.21 | 33,601.71 |
| Revenue | 37,642.90 | 34,428.85 | 29,017.54 |
| Profit After Tax | 6,060.21 | 6,165.87 | 4,857.02 |
| Reserves and Surplus | 25,142.90 | 26,379.43 | 24,912.89 |
Important Details of Bajaj Auto Limited Buyback 2024
| Issue Period | March 6, 2024 – March 13, 2024 |
| Security Name | Bajaj Auto Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 4,000,000 |
| Issue Size (Amount) | Rs 4,000.00 Crores |
| Buyback Price | Rs 10000 per share |
| Face Value | Rs 10 per share |
| Listing At | BSE, NSE |
Bajaj Auto Buyback Time-Table
| Last Date to buy shares | 28-Feb-24 |
| Record Date | 29-Feb-24 |
| Offer Opens On | 6-Mar-24 |
| Last Date for receipt of Tender Forms | 13-Mar-24 |
| Offer Closes On | 13-Mar-24 |
| Finalisation of Buyback Acceptance | 19-Mar-24 |
| Last Date for settlement of bids | 20-Mar-24 |
| Last Date for Extinguishment of Shares | 26-Mar-24 |
The Necessity of the Bajaj Auto Buyback
Bajaj Auto Buyback is a financial strategy of the company, for driving the sustainable growth of its business and enhancing the overall returns for its shareholders. The growth of business and robust cash generation, cash generation, and strong balance sheet allows the company to reward its shareholders from time to time. The buyback reinforces the company’s commitment to its shareholders by returning the surplus cash to them which will improve its EPS and Return on Equity.
Lead managers for Bajaj Auto Limited Buyback
Jm Financial Limited are the lead managers of the Bajaj Auto Limited Buyback.
How to Apply for Bajaj Auto Buyback?
Wait for the buyback to open for subscription, then click here to apply for the Bajaj Auto Limited Buyback 2024 with Bigul.
How to Check Allotment Status of Bajaj Auto Limited Buyback?
The registrar for Bajaj Auto Limited Buyback 2024 is Kfin Technologies Limited. To check the ipo allotment click here.
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FAQs
- What is the Bajaj Auto Buyback 2024, and what is its purpose?
The Bajaj Auto Limited Buyback 2024 is a share repurchase program where the company plans to buy back shares from its shareholders. The purpose of this buyback is to return the surplus cash to the shareholders and to enhance shareholder value, optimise capital structure and improve earnings per share.
- What are the details of the buyback offer?
The buyback offer includes the repurchase of 40 lakh shares at Rs 10,000 per share, totalling Rs 4,000 crore. The buyback price is set at a 43 per cent premium over the recent closing price. This represents 1.41 per cent of the company’s total outstanding shares.
- When will the Bajaj Auto Limited Buyback 2024 open, and how can I apply?
The buyback offer opens on March 6, 2024 and will close on March 13, 2024. Once it is open, eligible shareholders can apply by clicking here.
- How do I check the allotment status of the Bajaj Auto Limited Buyback?
The registrar for the Bajaj Auto Limited Buyback 2024 is Kfin Technologies Limited. To check the ipo allotment details, visit here.
- Who can participate in the Bajaj Auto Limited Buyback?
All shareholders of Bajaj Auto Limited as of the record date set on February 29, 2024 are eligible to participate in the buyback. This includes both retail and institutional investors. The company’s promoters have also indicated their participation in the buyback.