New Delhi: Bajaj Auto on Monday announced a share buyback worth Rs 4,000 crore.
The company's board has approved the proposal for buy back of up to 4,000,000 shares of face value of Rs 10 each at a price of Rs 10,000 per share for a total consideration not exceeding Rs 4,000 crore, the Pune-based company said in a regulatory filing.
The company's board has constituted a buyback committee and has delegated the power to do all such acts, deeds, matters and things as it may deem necessary, expedient or proper in connection with the offer, it added.
Share buyback is a practice where companies decide to purchase their own shares from their existing shareholders either through a tender offer or through an open market.
The announement pushed the shares up on the bourses with the stock ending nearly 2 per cent higher on Tuesday.
The stock jumped 6.21 per cent to reach its 52-week high of Rs 7,420 per share during the day on the BSE. It later ended at Rs 7,093.75, a gain of 1.55 per cent. On the NSE, it advanced 1.76 per cent to settle at Rs 7,107 apiece. During the day, it climbed 5.94 per cent to Rs 7,399 -- its 52-week high.
The company's market valuation went past the Rs 2 lakh crore-mark during the day, helped by a rally in the stock price. Its market capitalisation (mcap) stood at Rs 2,00,880.64 crore.
The buyback is subject to the approval of the shareholders, the board announced.
