Bajaj Auto buyback alert! Final day to purchase shares to take part in agency’s biggest-ever buyback price Rs 5,633 crore
Bajaj Auto mounted June 24 (Wednesday) because the report date for its Rs 5,633 crore share buyback. Solely these shareholders who personal the shares of the corporate of their demat accounts as on the report date will probably be eligible to tender shares.
As per SEBI’s T+1 settlement norm, traders should purchase the corporate’s shares not less than one buying and selling day earlier than the report date in order that they’re credited to their demat accounts by that date, making them eligible for the reward. This makes June 23 (Tuesday) the final date to purchase the shares in order that they’re credited to the shareholders’ accounts by the report date (Wednesday).
All about Bajaj Auto’s share buyback
Bajaj Auto in Might introduced its board had accredited a plan to buyback as much as 46.94 lakh shares, every with a face worth of Rs 10, representing 1.68% of the overall paid-up share capital, for an mixture quantity not exceeding Rs 5,633 crore. The buyback will probably be performed through the tender route at a worth of Rs 12,000 apiece, implying a premium of practically 18% to the inventory’s earlier closing worth.
Additionally learn: Bajaj Auto’s Rs 5,633 crore share buyback | Key issues to know
This comes after a Rs 4,000 crore buyback of shares in 2024 for Rs 10,000 per share. Buyback of shares refers to a company motion the place an organization repurchases its personal shares from present shareholders, largely at a premium to the market worth.
How a lot revenue can traders make from Bajaj Auto’s share buyback?
The corporate is but to announce the entitlement ratio for its share buyback. On the buyback worth of Rs 12,000, a small shareholder should buy a most of 17 shares to be eligible for the small shareholder quota for the buyback, Sunny Agrawal, Head of Elementary Analysis at SBI Securities, estimated.
“Assuming an acceptance ratio of 55%, 9 shares will get accepted for buyback at Rs 12,000/share. The remaining 8 shares will stay with the investor,” he added. Assuming the market worth stays unchanged at Rs 10,000, the overall return on funding comes to just about 10.6%, in response to the analyst.
“The return potential may be increased if the inventory good points from the CMP of Rs 10,000 in addition to if the acceptance ratio is increased. Essentially, Bajaj Auto is witnessing respectable demand restoration within the home market with its refreshed motorbike portfolio. Electrical scooter gross sales quantity progress can be sturdy with firm being the 2nd largest participant within the home E-2W market. Firm can be witnessing wholesome demand within the export markets. Buyers can due to this fact purchase to take part within the buyback,” Agrawal additional stated.Additionally learn: Bajaj Auto units June 24 as report date for Rs 5,633 crore share buyback. Right here’s all you have to know
Must you purchase Bajaj Auto shares to take part in buyback?
Buyers who nonetheless don’t maintain any shares of Bajaj Auto, the buyback alone just isn’t the best cause to enter, in response to Harshal Dasani, Enterprise Head of INVasset PMS. He highlighted that enterprise and valuation match ought to drive the choice. For traders who already personal the inventory of their portfolio, Dasani believes that the reserved-category mechanics make participation a helpful arithmetic train.
“The buyback sometimes comes at a premium to the prevailing market worth, with retail shareholders (these holding shares price as much as Rs 2 lakh) sitting in a reserved class that traditionally sees acceptance ratios near 100% of tendered shares,” Dasani defined.
Market regulator SEBI has mandated that 15% of a buyback’s complete supply measurement should be reserved for small shareholders. From Bajaj Auto’s context, which means round 7.04 lakh shares price Rs 844.92 crore on the buyback worth will probably be reserved for small shareholders holding shares price as much as Rs 2 lakh on the report date, Anand Rathi highlighted in its analysis report.
“As per shareholding knowledge of annual report 2025, particular person traders qualifying above standards held roughly 64,16,761 shares, implying an acceptance ratio of round 11% for retail traders. Thus, the general acceptance ratio for retail traders is 11%,” the analysis analysts on the agency defined, whereas noting that the acceptance ratio can change on report date.
Additionally learn: Bajaj Auto nears report date for Rs 5,633 crore share buyback at 19% premium. Must you take part?
Traditionally, buybacks the place promoters abstain from participation are inclined to witness comparatively higher acceptance ratios for retail traders in comparison with institutional classes, stated Uttam Kumar Srimal, Senior Analysis Analyst at Axis Direct. “Since promoters usually are not taking part, the efficient competitors for tendering shares reduces considerably,” he stated.
This means increased chance of share acceptance in retail class, the analyst stated, including that this additionally could result in potential arbitrage alternative if bought beneath buyback worth. Moreover, decrease excellent fairness helps EPS enchancment, he added.
The buyback can be a robust sign of administration confidence and surplus money era, Srimal stated. “We consider the buyback announcement displays Bajaj Auto’s sturdy steadiness sheet, wholesome free money move era, environment friendly capital allocation method and confidence in long-term enterprise fundamentals,” he added.
“The non-participation of promoters materially improves attractiveness for retail traders underneath the tender supply mechanism. Last good points, nonetheless, will rely on acceptance ratio, inventory worth motion earlier than report date, participation stage from retail class. Buyers ought to intently monitor the upcoming report date announcement and letter of supply earlier than taking participation selections,” he concluded.
Additionally learn:What Jefferies, Nomura and different brokerages stated after Bajaj Auto’s This autumn outcomes
Bajaj Auto share worth
Bajaj Auto shares fell over 3% in a single month. The inventory total gained practically 7% in 2026 to date. The inventory jumped 22% in a single yr.
In the long run, the shares of the two-wheeler maker delivered practically 122% returns over three years and round 142% in 5 years. The corporate presently has a market capitalisation of greater than Rs 2.85 lakh crore.
Additionally learn: Sebi board approves reintroducing open-market window for share buybacks from August 1
(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t characterize the views of The Financial Occasions)
