Bajaj Auto, one of India’s leading two-wheeler manufacturers, has recently made headlines with its announcement of a massive ₹4,000 crore Bajaj Auto share buyback plan. This move has sparked significant interest among investors and market analysts, leading to a notable surge in the company’s share prices.
In this article, we will look at the Bajaj Auto Share Buyback Record Date, Price, Entitlement, and Acceptance Ratio details.
Consider reading: Bajaj Auto Share Price Target
Bajaj Auto Share Buyback Details
|Bajaj Auto Share Buyback Type:
|Bajaj Auto Share Buyback Offer Amount:
|Date of announcement:
|Jan 08 2024
|Bajaj Auto Share Buyback record date
|Bajaj Auto Share Buyback Offer Size:
|Bajaj Auto ShareBuyback Number of Shares:
|Bajaj Auto Price Type:
|Bajaj Auto Share Buyback Price:
|₹ 10000 Per Equity Share
|Bajaj Auto ShareBuyback Entitlement Ratio
|Bajaj Auto Share Buyback Acceptance Ratio
The buyback plan involves purchasing 40 lakh fully paid-up equity shares at a face value of ₹10 each, at an impressive price of ₹10,000 per share. This price represents a substantial 43% premium over the last traded price. The buyback is to be conducted through the tender offer route on a proportionate basis.
Bajaj Auto Share Buyback: Market Reaction and Analysts’ Views
Following the announcement, Bajaj Auto‘s shares experienced a significant jump, with a 6% increase in Tuesday’s trade, reaching a high of ₹7,420. This positive reaction is a testament to the market’s confidence in Bajaj Auto’s strategic decision. Analysts have diverse opinions, with some maintaining a sell rating while others, like Jefferies, have reiterated a buy stance with a raised target price.
Bajaj Auto Share Buyback: The Impact on Shareholders
The buyback plan is expected to be beneficial for shareholders, particularly the promoters who are likely to participate in the buyback issue. Analysts predict that the promoters could potentially receive about ₹2,200 crore from this buyback. For retail investors, the acceptance ratio is suggested to be in the range of 4% to 10%.
Bajaj Auto’s Market Position and Future Prospects
Bajaj Auto has been witnessing healthy retail trends and has established a strong presence in the EV market with its brand Chetak. The company holds a 12% market share in the EV segment, despite being a late entrant. Additionally, Bajaj Auto’s refreshed versions of the Pulsar range and upcoming new launches are expected to bolster its market position further.
Final Thoughts on Bajaj Auto Share Buyback
Bajaj Auto’s ₹4,000 crore share buyback plan is a significant move, reflecting the company’s confidence in its financial strength and future growth prospects. This strategic decision not only benefits the shareholders but also reinforces Bajaj Auto’s commitment to maintaining a robust market presence.
As the company continues to innovate and expand, it remains a key player in the automotive industry, poised for continued success.
FAQs on Bajaj Share Auto Buyback
What is the Bajaj Auto Share Buyback record date?
The record date for the Bajaj Auto Buyback has not been announced yet. Watch this space for the latest updates.
What is the entitlement ratio for Bajaj Auto Buyback?
The entitlement ratio for Bajaj Auto Buyback is expected to be around 20%.
What will be the acceptance ratio for Bajaj Auto Buyback?
The entitlement ratio for Bajaj Auto Buyback is expected to be around 40%.