Bajaj Auto stock up 1% ahead of board meet today to review share buyback

Shares of Bajaj Auto Limited traded 1 percent higher to Rs 7,043 on January 8 as the company’s board of directors are set to meet and consider a share buyback proposal.

At 9:25 am, the counter was trading at Rs 7,004, up 0.4 percent from the previous close on the NSE. The stock soared nearly 5 percent last Wednesday after the announcement of the buyback proposal and gained over a percent more on Friday, closing the week at Rs 6,978, rising 5 percent since the announcement.

In an exchange filing last week, Bajaj Auto stated: “The meeting of the Board of Directors of the company is scheduled on January 8 to consider and approve a proposal to buyback of fully paid-up equity shares of the company and other matters necessary and incidental thereto.”

Follow our market blog for all the live action

This would be Bajaj Auto’s second share buyback in the last two years. The auto major had declared a share buyback in July 2022 at Rs 4,600 per unit.

In an interaction with CNBC TV-18, Rajiv Bajaj, the managing director of the company, said that the buyback would be far bigger this time. Bajaj further said that the company has had an excellent 2023 and will end the financial year 2024 with cash of Rs 20,000 crore.

The Bajaj Auto MD said that whenever the company has more than Rs 15,000 crore worth of cash on its books, he expects to give back over 70 percent to the investors.

Shares of the company closed at Rs 6,978, up over a percent during the last trading session. It pared gains after it touched a record high of Rs 7,084 on January 5.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.