Bajaj Auto Approves Buyback of 46.94 Lakh Shares Worth ₹5,632 Crore at ₹12,000/Share
Bajaj Auto approved a buyback of 46.94 lakh equity shares at ₹12,000 per share, totaling ₹5,632.80 crore. The buyback, representing 1.68% of share capital, was approved by the board on May 6, 2026, and shareholders later. Promoters will not participate.
A significant buyback program of this size can positively impact the stock price by reducing the number of outstanding shares and increasing EPS. It also signals confidence from the management.
The buyback of shares is generally viewed positively by the market as it indicates the company's strong financial health and commitment to returning value to shareholders.
Bajaj Auto Limited has announced the approval of a buyback of up to 46,94,000 fully paid-up equity shares, representing approximately 1.68% of the company's total equity share capital. The buyback will be conducted through the tender offer route at a price of ₹12,000 per share, for an aggregate amount of up to ₹5,632.80 crore (approximately $675 million).
This buyback represents 16.93% and 15.59% of the company's paid-up equity share capital and free reserves as of March 31, 2026, and is well within the statutory limit of 25%. The Board of Directors first approved the proposal on May 6, 2026, and shareholders subsequently approved it through a postal ballot, including e-voting. The company has also submitted a certified true copy of the special resolution passed by shareholders and the resolutions passed by the board of directors to the stock exchanges.
The buyback aims to return surplus cash to shareholders, enhance earnings per share, and improve return on equity. The funds for the buyback will be sourced from the company's free reserves and securities premium account. The buyback period will commence from the date of declaration of the results of the postal ballot until the payment of consideration to shareholders. The company will announce a record date to determine entitlement, with a reservation for small shareholders. The promoters and promoter group have indicated their intention not to participate in the buyback.
What to do with a filing like this
Bajaj Auto Limited filed this with the NSE as a statutory disclosure, categorised under buyback announcement. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Bajaj Auto Limited. Read the original for the full detail.