What Investors Should Know About the Bajaj Auto Board's Today Share Buyback Discussion



Bajaj Auto Buyback: The domestically produced motorcycle and three-wheeler manufacturer Bajaj Auto has announced that on Monday, June 27, 2022, its board will meet to further discuss the proposal for the buyback of the company's fully paid-up equity shares. In an exchange filing on June 22, Bajaj Auto stated, "We desire to tell you that a meeting of the board of directors of the company is planned to hold on June 27 to further discuss the proposal for buyback of fully paid-up equity shares of the company."


After this meeting, the buyback's price and other specifics will be made known.


The buyback program had previously been postponed by the business during a meeting on June 14. The buyback plan had been postponed with a statement that said, "We desire to advise that the board of directors of the Company at its meeting held on June 14, concluded that additional considerations are required to decide on the proposal of buyback, and therefore deferred the topic."

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.


Bajaj Auto Dividend


The automaker also disclosed in an announcement that it would pay its shareholders a dividend of Rs 140 per share. The Board of Directors approved/recommended a dividend at the rate of Rs. 140 per share (1400 percent) of the face value of Rs. 10 per share on equity shares for the fiscal year that ended on March 31, by the company's dividend distribution policy. Informed Bajaj Auto regarding dividend payment, "The abovementioned dividend, if declared by the shareholders at the next Annual General Meeting, will be credited/dispatched on or about July 30.


According to the statement, "The dividend, if declared, shall be paid to the equity shareholders whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as of July 1, which is the record date set for such purpose."


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 Q4 Results


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 unusual item of Rs 315 crore that accumulated as an incentive due from the Maharashtra government under an incentive program was the primary cause of the greater profit.

However, operating revenue for the examined period decreased 7% to Rs 7,975 crore. The company's EBITDA (earnings before interest, tax, depreciation, and amortization) decreased 10% to Rs 1,396 crore, while margins decreased to 17.5%. Compared to May of last year, when 2,71,862 vehicles were sold, Bajaj Auto recorded a little increase in total vehicle sales to 2,75,868 units.

Bajaj Auto Stock Price History


The stock rose 1.05 percent to settle at Rs 3,824.50 in the most recent session. Shares of Bajaj Auto have increased by more than 14% in 2022 (YTD), although the auto stock has decreased by roughly 11% over the past year.


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