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Buyback of Bajaj Auto Shares: Board to Meet Today to Discuss Buyback; Stock Up

<p>On January 8, the stock of Bajaj Auto Limited saw a 1% increase to Rs 7,043 ahead of the company’s board of directors meeting to discuss a proposal for a share repurchase.</p>
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<p>“The meeting of the Board of Directors of the Company is scheduled on 08/01/2024, inter alia, to consider and approve a proposal to buyback of fully paid-up equity shares of the Company and other matters necessary and incidental thereto,” Bajaj Auto said in a regulatory filing last week.</p>
<p>It would be the second Bajaj Auto repurchase in the last two years if granted. In July 2022, the car manufacturer announced a share purchase at a price of ₹4,600 per equity share. The amount of the last open market share repurchase by Bajaj Auto was ₹2,500 crore.</p>
<p>The managing director of Pune-based Bajaj Auto, which manufactures two-wheelers, Rajiv Bajaj, has hinted that this time’s share purchase would probably be much larger. Whether to use the open market or a tender offer for the repurchase will be determined by the board of the firm.</p>
<p>The company’s managing director, Rajiv Bajaj, said that the repurchase will be much larger this time in conversation with CNBC TV-18. Bajaj went on to say that the business had a great 2023 and would close the fiscal year 2024 with Rs 20,000 crore in cash.</p>
<p>According to the MD of Bajaj Auto, he anticipates returning more than 70% of the company’s capital to investors once it exceeds Rs 15,000 crore in its books.</p>
<p>In the previous trading session, the company’s shares saw a gain of more than one percent, closing at Rs 6,978. After reaching a record high of Rs 7,084 on January 5, it reduced gains.</p>