The board of Bajaj Auto on Monday introduced a Rs 4,000-crore share buyback at a value of Rs 10,000 per share. The repurchase value is at an enormous premium of 43 per cent to the closing value of the two-wheeler agency on the BSE on Monday.
Asserting the plan after market hours, the Pune-based agency stated its board has accredited a proposal to purchase again 4,000,000 shares representing 1.41 per cent of the entire variety of fairness shares of the corporate at a value of Rs 10,000 per share, payable in money for a complete consideration not exceeding Rs 4,000 crore.
“This, it stated, excludes transaction prices corresponding to brokerage, submitting charges, advisers/ authorized charges, public announcement publication bills, printing and dispatch bills, relevant taxes corresponding to buyback tax, securities transaction tax, items and providers tax, stamp responsibility),” the agency stated.
Bajaj Auto added the buyback represents 16.33 per cent and 14.49 per cent of the entire paid-up fairness share capital and free reserves (together with securities premium account) in keeping with the audited standalone and consolidated monetary statements for the monetary yr ended March 31, respectively.
The share repurchase will likely be achieved by the tender supply route.
Market circles stated shares of Bajaj Auto are more likely to stage a pointy rally on Tuesday given the worth at which they are going to be purchased again. It’s not clear if the promoters will take part within the programme.
Whereas the promoters maintain practically 55 per cent of the corporate, the remainder is held by home establishments corresponding to mutual funds, insurance coverage firms and banks, Indian public and international portfolio traders.
In a buyback, an organization acquires its personal shares from the market or from shareholders, that are subsequently extinguished.
