Bajaj Auto has confirmed that its ₹5,632.8 crore share buyback program will commence on Wednesday, July 1, with the offer closing just five days later on Tuesday, July 7.
The announcement marks the final execution step for the repurchase plan, which the company previously approved to return capital to shareholders and support its valuation.
52% to ₹2,649 on the National Stock Exchange on Monday, buoyed by the approaching record date for the major share repurchase program.
Shares of the auto manufacturer climbed as much as 2.52% to ₹2,649 on the National Stock Exchange on Monday, buoyed by the approaching record date for the major share repurchase program.
The stock’s advance reflects investor appetite for the buyback, which is viewed as a significant signal of management’s confidence in the company’s cash generation and future prospects.
The buyback represents one of the largest corporate actions in the Indian auto sector this year.
By offering to repurchase shares at a premium to market levels, Bajaj Auto aims to reduce its equity base and improve earnings per share for remaining holders.