On Monday, Bajaj Company has announced its decision to proceed with a buyback plan. As per the regulatory filing, the Board of Directors of Bajaj, in a meeting held today, gave the green light to the proposal to buy back up to 4,000,000 fully paid-up Equity Shares, each having a face value of Rs 10/-. This buyback represents 1.41 per cent of the total Equity Shares of the Company and will be executed at a price of Rs 10,000 per Equity Share, payable in cash., Companies News, Times Now
A buyback is when a company purchases its own shares in the stock market from existing shareholders. It is the most tax-efficient way to reward shareholders.
This is the second time Bajaj Auto will be doing a share buyback if the board approves. In July 2022, Bajaj Auto launched a share buyback worth Rs 2,500 crore. The buyback was done at Rs 4,600 a share. Since the first share buyback, the share value of the automaker has more than doubled in value.