In the ever-evolving realm of financial tactics, Bajaj Auto Ltd. has revealed its plan to repurchase shares in the upcoming year of 2024. This strategic decision has piqued the interest of the investment community, leading both existing shareholders and prospective investors to scrutinize the details of this noteworthy development.
About Company
- Bajaj Auto, the flagship company of Bajaj Group, headquartered in Pune India, is a two-wheeler and three-wheeler manufacturing company that exports to 79 countries across several countries in Latin America, Southeast Asia, and many more. It is the world's fourth-largest manufacturer of motorcycles. It is also the largest manufacturer and seller of 3-wheelers globally. In FY23, Exports contributed 41% to total revenue. In FY 23, Bajaj Auto's market share was 17.3% in Motorcycles and 73% in three-wheelers.
- As of 6th Jan 2024 company has a total net worth of Rs.293.31bn.
Bajaj Auto Ltd. Buy Back Opportunity
- Company has approved the proposal for the buyback of Equity Shares at a price of Rs.10000/- per equity share up to an aggregate amount not exceeding Rs. 40bn from the shareholders of the Company on a proportionate basis through a tender offer.
| CMP (Rs) | 6984 |
| Buy Back Price (Rs) | 10000 |
| Acceptance Ratio* | 10.82% |
Buy Back Details
Company Info
| BB Code | Bajaj Auto IN EQUITY |
|---|
| ISIN | INE917101010 |
| 52 WKH(Rs.) | 7087 |
| 52 WKL(Rs | 3522 |
| Market Cap {INR Bn) | 2015.26 |
Shareholding Pattern (%)
| Dec-23 | Sep-23 | June-23 |
|---|
| Promoters | 54.95 | 54.99 | 54.99 |
| FII's | 14.64 | 14.37 | 13.67 |
| DII's(Rs | 8.66 | 9.03 | 9.56 |
| Public | 21.67 | 21.54 | 21.72 |
Acceptance and Profit & Loss Scenario
| No. of Shares to Buy* | Total investment @ Rs.6984 | Acceptance Ratio(%) | Buyback no shares | Value of accepated share via buy Buyback price share value at Rs.10000 | Left over Shares | Profit/loss scenario post Buyback if client sell remaining share |
|---|
| At Rs.7654 | At Rs.8505 | At Rs.9450 | At Rs.10500 |
|---|
| 20 | 1,39,680 | 5 | 1.0 | 10,000 | 19 | 11.27% | 22.85% | 35.70% | 49.99% |
| 20 | 1,39,680 | 10 | 2.0 | 20,000 | 18 | 12.95% | 23.92% | 36.10% | 49.63% |
| 20 | 1,39,680 | 15 | 3.0 | 30,000 | 17 | 14.63% | 24.99% | 36.49% | 49.27% |
| 20 | 1,39,680 | 20 | 4.0 | 40,000 | 16 | 16.31% | 26.06% | 36.88% | 48.91% |
| 20 | 1,39,680 | 30 | 6.0 | 60,000 | 14 | 19.67% | 28.20% | 37.67% | 48.20% |
| 20 | 1,39,680 | 40 | 8.0 | 80,000 | 12 | 23.03% | 30.34% | 38.46% | 47.48% |
| 20 | 1,39,680 | 50 | 10.0 | 1,00,000 | 10 | 26.39% | 32.48% | 39.25% | 46.76% |
Source: Company, CEBPL
Note:
*Actual acceptance ratio may vary, ^Assume stock price reached Rs.850 on ex-date, #round down to nearest integer
* Retail shareholders holding less than Rs 2 Lac shares as on “Record Date”
* Please note acceptance Ratio is Dynamic in Nature can be change on Record
