Bajaj Auto: The proposal for a share buyback will be considered by the company’s board of directors at its meeting on January 8, according to Bajaj Auto.
The Bajaj Auto stock rose more than 5% on January 3 to surpass Rs 7,000 for the first time on news that the Bajaj Auto board will consider a share buyback on January 8. At the close, the stock was trading at Rs 6,957.80 on the NSE and Rs 6,9540 on the BSE.
In compliance with the relevant provisions of the Companies Act, 2013 (including the rules and regulations framed thereunder), the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended, and other applicable laws, This Company stated in a regulatory filing that they will consider a proposal to buyback of fully paid-up equity shares of the Company and other matters necessary and incidental thereto.”
In an interview with CNBC-TV18, Bajaj Auto CEO Rajiv Bajaj stated that the buyback is a cost-effective method of giving shareholders their money back. He explained that the reason for this is that they have had an exceptional quarter. Bajaj stated that it makes sense that given the type of year they have been having, the buyback will be greater than it was the previous time, without offering any specifics. He continued, “We look to give back to investors whenever cash on books crosses Rs 15,000 crore.” Bajaj further stated that they have redesigned their company to invest in new technologies, such as building new facilities and technology for Chetak and a new KTM plant in Chakan, Pune.
Bajaj Auto recently revealed that its total sales in December 2023 increased by 16 percent to 3,26,806 units. sales of two-wheelers overall were 2,83,001, up from 2,47,052 during the same period last year.
