Bajaj Auto To Consider Share Buyback On June 27; Stock Gains Over 3%

Earlier on June 14, the board meeting of the auto major was convened for considering buyback, nevertheless as the matter was deferred then, the company is now to consider the same on June 27.

In the BSE filing, 2 and 3-wheelers company said, "In furtherance to our letter dated 9 June 2022 with respect to convening of the meeting of the Board of Directors of the Company ("Board") and letters dated 14 June 2022 with respect to the outcome of the said meeting, 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 in accordance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018".

Experts are of the view that the cash rich company in its upcoming buyback will announce a hefty premium over the current price. Last the company came up with the buyback offer in 2000, wherein it agreed to buyback 18 million equity shares at a price of Rs 400 each.

Buyback is a corporate action in which the company buys back or repurchases its outstanding equity shares floated in the market from its shareholders at a premium. This is considered a tax-efficient way of rewarding investors.

Also, the company on Wednesday launched its new Pulsar N160 motorcycle model in India priced at Rs. 1.28 lakh (ex-showroom Delhi).

The buyback news triggered gains in the scrip of Bajaj Auto. Last at around 11:02 am, the stock traded higher by 2.5% at Rs. 3726.6, while day's high price is Rs. 3749 apiece on the NSE.