Share Buyback: Bajaj Consumer stock falls ahead of second announcement in 12 months

Shares of Bajaj Consumer Care Ltd. are trading lower ahead of the company's board meeting on Thursday, July 24, to consider a proposal for a share buyback. This would mark the second consecutive year the company is considering a buyback, following one conducted in 2024.

The record date for the proposed buyback is also expected to be announced during the meeting.

In July 2024, Bajaj Consumer Care had announced a buyback worth ₹166.49 crore, executed via the tender offer route, meaning shares were repurchased at a fixed, pre-determined price.

The buyback price in the previous issue was set at ₹290 per share. The stock continues to trade below that level.

A share buyback involves a company repurchasing its own shares from existing shareholders. It is often seen as a tax-efficient way of returning capital to investors.

The frequency of buyback announcements has declined since October last year, when new regulations came into effect.

Under the revised rules, income from equity share buybacks is now taxed in the hands of shareholders, unlike earlier when the tax burden was on the company.

As of now, Bajaj Consumer shares are trading 1.14% lower at ₹239.78. The stock, however, has gained 18% over the past month.