Bajaj Auto Rs 4,000-Crore Share Buyback Opens March 6. Key Details Investors Should Know

Bajaj Auto Share Buyback Opens Tomorrow: Bajaj Auto share buyback for raising up to Rs 4,000 crore will open on March 6 and close on March 13. The two-wheeler and three-wheeler maker will buy back 40 lakh shares, which is 1.41% of total outstanding shares, at an attractive price of Rs 10,000 per share, through the tender route.

The buyback plan was announced in January 2024 for Rs 10,000 per share through the tender offer route and on a proportionate basis.

The buyback, which will remain open for tendering till March 13, is at a significant premium to the current market levels of Rs 8,299.60 on NSE. The stock price was trading 1.55% higher at Rs 8,334.90 during today’s afternoon trade.

The last date for verification of tender forms by the registrar is being fixed as March 18 while bids will be settled on the bourses by March 20. The equity shares bought back will be extinguished by March 26.

Bajaj Auto share buyback entitlement ratio

Besides the tender route buyback timelines, Bajaj Auto has announced acceptance ratio, with the final entitlement ratio for general, institutional acceptance.

For the general and institutional categories, Bajaj Auto will buyback one equity share for every 82 equity shares held on the record date. This translates to a 1.22% acceptance rate. Thus, a minimum of 1.22% of shares will be accepted, with the final acceptance potentially slightly higher on a case-by-case basis, said Abhilash Pagaria of Nuvama Alternative & Quantitative Research.

For retail investors, which includes individual shareholders with investments up to ₹2 lakh, the share entitlement ratio has been fixed at seven equity shares for every 27 equity shares held on the record date, resulting in a 25.9% acceptance rate.

Therefore, a minimum of 26% of shares will be accepted, with the final acceptance likely to be closer to 26-30%, Nuvama said.

The record date for Bajaj Auto buyback was February 29.

Should You Tender Your Shares?

For general and institutional investors, Bajaj Auto will buyback one equity share for every 82 equity shares held on the record date, translating to a 1.22 per cent acceptance rate. Thus, a minimum of 1.22 per cent of shares will be accepted, with the final acceptance potentially slightly higher on a case-by-case basis, said Abhilash Pagaria of Nuvama Alternative & Quantitative Research.

For retail, Bajaj Auto will buyback seven equity Shares for every 27 shares held on the record date, resulting in a 25.9 per cent acceptance rate. Therefore, a minimum of 26 per cent of shares will be accepted, with the final acceptance likely to be closer to 26-30 per cent, Nuvama said.