Highest-Ever Buyback At Rs 12,000 Per Share: Two-Wheeler Major Announces Rs 5,632 Crore Share Repurchase At 18% Premium To CMP

On Monday, Indian equity benchmarks ended higher, with the benchmark Nifty 50 index rising 0.37 per cent to 24,102.90. Amid the positive market sentiment, Bajaj Auto share price traded at Rs 10,191, up 1.24 per cent from the previous close after investors continued to track the company's recently approved share buyback worth Rs 5,632.80 crore.

Bajaj Auto Announces Rs 5,632.80 Crore Buyback

Bajaj Auto has proposed to buy back up to 46.94 lakh fully paid-up equity shares at a price of Rs 12,000 per share through the tender offer route. The aggregate buyback size stands at Rs 5,632.80 crore and represents 1.68 per cent of the company's total paid-up equity share capital.

Based on the current market price of Rs 10,191, the buyback price of Rs 12,000 offers a premium of approximately 17.75 per cent to shareholders. The company stated that the buyback will provide an efficient mechanism to return surplus cash to shareholders while enhancing shareholder value.

Buyback Price Offers Premium To Market Price

The buyback price of Rs 12,000 per share also represented a premium of approximately 25.76 per cent over the BSE closing price and 25.74 per cent over the NSE closing price as of April 29, 2026, when the proposal was approved by the Board.

According to the company, the buyback price was determined after considering its financial position, future growth prospects, prevailing market prices, valuation parameters and the expected impact on earnings per share and return on equity.

Buyback Details

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Promoters To Skip Buyback

The company disclosed that promoters and promoter group entities, which collectively hold 55.01 per cent stake in Bajaj Auto, have expressed their intention not to participate in the buyback.

This could potentially improve participation opportunities for public shareholders tendering their shares under the buyback offer.

Bajaj Auto buyback history

Bajaj Auto has consistently returned surplus cash to shareholders through buybacks over the years. The proposed Rs 5,632.80 crore buyback follows the company's Rs 4,000 crore buyback in 2024, which was undertaken at Rs 10,000 per share. The current buyback price of Rs 12,000 per share is 20 per cent higher than the previous buyback price.

Shareholders Approve Proposal

The buyback proposal was approved by shareholders through a special resolution, with the voting results declared on June 18, 2026. The buyback size represents approximately 16.93 per cent of the company's standalone net worth and 15.59 per cent of its consolidated net worth as of March 31, 2026.

The company stated that it has adequate cash reserves and believes the buyback will help optimise its capital structure while continuing to support future business growth.

About Bajaj Auto

Bajaj Auto Ltd is one of India's leading automobile manufacturers and a prominent player in the global two-wheeler and three-wheeler industry. The company manufactures motorcycles, scooters and commercial vehicles and exports its products to more than 70 countries.

Its product portfolio includes brands such as Pulsar, Dominar, Platina, Avenger and the electric scooter Chetak. Bajaj Auto also has strategic partnerships with KTM, Husqvarna and Triumph, strengthening its presence across premium motorcycle segments in India and international markets.

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Disclaimer: The article is for informational purposes only and not investment advice.