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From buyback size to premium and record date, here's everything that nearly 3 lakh retail shareholders of Bajaj Auto need to know with regards to its share buyback.
Two and three-wheeler manufacturer Bajaj Auto Ltd. announced a buyback of its equity shares on Wednesday, May 6, along with its results for the March quarter.
Buyback Contours
As per its exchange filing, Bajaj Auto plans to repurchase 46.94 lakh equity shares of the company, which carry a face value of ₹10 each as part of the buyback process.
The number of shares it plans on purchasing, amount to 1.68% of the total number of equity shares of the company.
Price for the share buyback has been fixed as ₹12,000 apiece, which is a premium of 15% from Wednesday's closing levels.
Bajaj Auto will spend a total of ₹5,633 crore for the share buyback, and this sum is excluding other costs, brokerage fees and applicable taxes.
Buyback Method
Bajaj Auto will be repurchasing its shares through the tender offer route. This is currently the only prevalent mechanism in India to buyback equity shares.
A tender offer route means that the company will repurchase its shares from existing shareholders at a fixed, pre-determined price, which, in this case is ₹12,000.
What Is Different from 2024 Buyback?
Back in 2024, Bajaj Auto had repurchased 1.41% of its outstanding equity at a price of ₹10,000 a share. The stock currently trades above those levels.
The 2024 buyback was also carried out via the tender offer route.
Record Date & Eligibility
Record date for the share buyback will be determined in due course, Bajaj Auto said in its exchange filing.
Shareholders who own shares of Bajaj Auto on the day of closing before the record date, will be eligible to tender their shares in the buyback.
Promoters of the company own a 55% stake at the end of the March quarter.
Shareholding Pattern
Bajaj Auto now has close to 3 lakh retail shareholders, or those with authorised share capital of up to ₹2 lakh. This is higher than the 1.87 lakh shareholders that the company had at the end of the December 2023 quarter. However, the percentage of stake they hold is nearly the same at 5.62% currently from 5.43% back in December 2023.
Mutual Fund shareholding has increased from 5.32% to 7.17% over the last two years.
Shares of Bajaj Auto ended 3.4% higher on Wednesday at ₹10,390. The stock has risen 33% over the last 12 months.
