Bajaj Auto stock in focus as board to consider buyback of shares today. Details here

Bajaj Auto shares will be in focus on Monday as the company’s board of directors will meet to consider a proposal of share buyback. In a regulatory filing last week, Bajaj Auto informed, “The meeting of the Board of Directors of the Company is scheduled on 08/01/2024, inter alia, to consider and approve a proposal to buyback of fully paid up equity shares of the Company and other matters necessary and incidental thereto." If approved, then it would be the second Bajaj Auto buyback in the last two years.

The auto major had earlier declared share buyback in July 2022 at 4,600 per equity share. The previous Bajaj Auto share buyback size was 2,500 crore done through the open market route. Rajiv Bajaj, managing director of the Pune based two wheeler maker Bajaj Auto has indicated the buyback of shares this time is likely to be far bigger.

The company’s board will decide whether the buyback will be done through a tender offer or the open market. Bajaj Auto share price hit a 52 week high of 7,088.00 apiece on the on January 05, after the announcement of share buyback. Bajaj Auto shares have rallied over 39% in the past three months, while the stock is up more than 92% in one year.

The two and three wheeler manufacturer recorded a 16% increase in its total in December. The company’s domestic sales rose 26% at 158,370 units and exports were up 3% to 124,631 year on year. The company had cash reserves of almost 17,500 crore, with net free cash flow addition of 3,600 crore in Q2FY24.

On Friday, Bajaj Auto shares ended 0.72% higher at 6,968.15 apiece on the BSE. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.