Bajaj Auto buyback: The Board of Directors of Bajaj Auto has deferred the buyback plan saying it is looking at different ways of returning surplus cash to its shareholders.
“In the course of today’s deliberations, the Board asked for some more dimensions of the buyback to be explored. Given that the meeting was time bound, the subject was deferred until such dimensions were explored and advised to the Board,” said a regulatory filing by the company.
Earlier, on June 9, Bajaj Auto had said it is mulling to consider a buyback of fully paid-up equity shares. The company had last announced a buyback in 2000
“This is to inform you that the meeting of Board of Directors of the Company is scheduled to be held on Tuesday, 14 June 2022, inter-alia to consider a proposal for buyback of fully paid-up equity shares of the Company in accordance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018,” read the regulatory filing by the company.
On Tuesday, shares of Bajaj Auto declined by 5 per cent after the company said its board has deferred a decision on its proposed share buyback.
Shares of the company had tanked 5.06 per cent to settle at Rs 3,684.40 apiece on the BSE. During the day, it tumbled 7.13 per cent to Rs 3,603.75. On the NSE, it declined 4.82 per cent to end at Rs 3,693.95 apiece.
On Wednesday, the shares of the two-wheeler and three-wheeler manufacturer were trading with marginal discount of around half per cent to Rs 3662.45 per share on the BSE.
A share buyback is a corporate action by a company to buy back its own outstanding shares from its existing shareholders usually at a premium to the prevailing market price. Share buybacks are planned to reduce the number of shares in circulation, hence increasing the share value and the earnings per share (EPS).