Bajaj Auto stock was trading flat in the afternoon session today after board of the firm approved a share buyback worth Rs 2,500 crore. The buyback represents 9.61 per cent of the total paid up share capital. The firm said its board cleared buyback of shares at a price not exceeding Rs 4,600.
The buyback price is 20.64 per cent or Rs 787.2 higher to the previous close of Rs 3,812.80 on BSE.
The company will utilise at least 50 per cent of the amount earmarked as the maximum buyback size for the buyback that is Rs 1,250 crore (minimum buyback size), it said. Based on the Minimum Buyback Size and Maximum Buyback Price, the company would purchase a minimum of 27,17,392 equity shares, Bajaj Auto said.
Meanwhile, shares of Bajaj Auto were trading 0.94 per cent higher at Rs 3,848 against the previous close of Rs 3,812.80 on BSE. The auto stock touched an intraday high of Rs 3,953.5, rising 3.69 per cent on BSE.
Shares of Bajaj Auto were trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has gained 18.52 per cent in 2022 and fallen 8.18 per cent in a year.
Total 0.35 lakh shares changed hands amounting to a turnover of Rs 13.52 crore on BSE. The market cap of the firm rose to Rs 1.11 lakh crore.
The company said the share buyback is for existing shareholders, except for promoters, promoter groups and persons in control of the company and would be carried out in the open market through stock exchange mechanism.
It would represent 8.71 per cent of the free reserves including securities premium account, it said
"Subject to the market price the equity shares being equal to or less than the maximum buyback price, the indicative maximum number of equity shares proposed to be bought back, would be 54,34,782 equity shares, comprising approximately 1.88 per cent of the paid-up share capital of the Company as of 27 June 2022," the company said.
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