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On June 14, Bajaj Auto may consider a share buyback; what investors should know

According to a notification the business sent to the exchanges on Thursday, Bajaj Auto will contemplate a buyback of its fully paid-up equity shares. In a meeting set for June 14, the board of directors will discuss a request to repurchase shares, the business informed exchanges.

In a filing with the exchange, the company stated: "This is to inform you that the Board of Directors of the Company is scheduled to meet on Tuesday, June 14, 2022, inter-alia to consider a proposal for the buyback of fully paid-up equity shares of the Company by the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018."

Further, the trading window for dealing in the company's securities is closed for the designated persons from June 9 through June 16, 2022 (both days inclusive), in accordance with the company's code of conduct established by the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended, according to Bajaj Auto.

An action was taken by a corporation to repurchase its outstanding shares from its current shareholders, also known as a share buyback or share repurchase, typically at a premium to the current market price Returning money to shareholders in this manner may be an alternative tax-efficient method. By reducing the number of shares in circulation, share buybacks can raise share prices and earnings per share (EPS).

The business last made a similar step in 2000 when shareholders authorized the purchase of up to 18 million equity shares for Rs 400 each.

Since FY08, Bajaj has increased its dividend payments to stockholders, going from Rs 20 per share in FY08 to Rs 140 at the end of FY22. After FY22, its total dividend distribution over the same period increased from Rs 289 crore to Rs 4,051 crore.

Bajaj Auto: Stock Price History

The stock price of the company has decreased 8.2% over the past year. It has increased by 19.3% so far this year. On the BSE, shares of Bajaj Auto closed on Thursday at Rs 3,876.90, an increase of 2.21 percent from Wednesday's close.

Bajaj Auto: Q4 Results

Sales figures for May were less than projected, according to Bajaj Auto. It stated that 2.75 lakh units were sold overall in May. Sales volumes dropped more than 34% from their pre-pandemic levels in May 2019 and only increased 1% year over year in the preceding month.

The company's bad export month was the main contributor to the lackluster sales result. May saw a 15% year-over-year decline in two-wheeler exports to 1.53 lakh units and a 67% year-over-year decline in three-wheeler exports to 10,163 units.

In comparison to the equivalent quarter of the prior fiscal year, Bajaj Auto Ltd. recorded a 10% increase in net profit for the quarter ending in March 2022, coming in at Rs. 1,469 crores as opposed to Rs. The extraordinary item of Rs 315 crore accrued as an incentive receivable from the Maharashtra government under an incentive scheme was the primary cause of the increased profit.

However, operating revenue decreased 7% to Rs 7,975 crore over the examined period.

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