Bajaj Auto share price rose as much as 2.52% to ₹26.49 apiece on NSE in Monday’s trading session ahead of ₹5,633 crore share buyback record date. The auto stock opened at ₹26.51 apiece today, as compared to previous close of ₹25.84 on Friday. Bajaj Auto share price touched an intraday high of ₹26.60, on 22 June.
Bajaj Auto share buyback details
In May, Bajaj Auto‘s board approved a share buyback proposal of up to 46.94 lakh equity shares with a face value of ₹10 each, representing 1.68% of the company’s paid-up equity capital. The buyback, valued at a maximum of ₹5,633 crore, will be carried out through the tender offer route at ₹12,000 per share—offering a premium of over 19% compared to the stock’s previous closing price.
The company has fixed 24 June as the record date to determine shareholders eligible to participate in what will be its largest-ever buyback programme worth ₹5,633 crore.
This follows Bajaj Auto’s ₹4,000 crore share buyback in 2024, which was executed at ₹10,000 per share. A share buyback is a corporate action in which a company repurchases its own shares from existing investors, typically at a premium to the prevailing market price.
According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, the buyback size is relatively small at only 1.68% of the outstanding equity capital, and the retail reservation stands at 7.04 lakh shares against a retail shareholding base of approximately 1.57 crore shares. This translates into a theoretical entitlement ratio of about 4.5–5%, implying that investors should not expect a high acceptance ratio.
“Even if the final acceptance reaches 10–12% due to participation patterns, a large portion of shares would likely remain untendered and continue to be exposed to market price fluctuations after the buyback,” Srivastava said.
Bajaj Auto share buyback: Should you participate or not?
Srivastava recommended small investors who can acquire shares within the ₹2 lakh eligibility limit before the record date of 24 June 2026, participation may be worthwhile as a low-risk special situation opportunity, particularly given Bajaj Auto’s strong balance sheet, healthy cash generation, and shareholder-friendly capital allocation.
However, she highlighted that investors should avoid buying solely for arbitrage gains, as the limited acceptance ratio significantly reduces the effective return.
“Overall, the buyback is favorable for existing shareholders, but the profit opportunity for new retail entrants is likely to be modest rather than extraordinary,” she added.
Meanwhile, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, said that investors may consider participating in the Bajaj Auto buyback, as it presents an attractive opportunity to generate healthy returns, saying that the buyback offer provides shareholders with a chance to tender their shares at a premium to the prevailing market price, potentially resulting in meaningful gains.
“For eligible investors, the buyback can be a rewarding proposition, particularly given Bajaj Auto’s strong fundamentals and consistent track record of creating shareholder value. However, investors should also assess factors such as acceptance ratio and market conditions before making a decision,” Ojha said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
