After the repurchase, Bajaj Auto’s share value doubles from the previous buyout in 2022, but it losses nearly 3%

Investor reaction to Bajaj Auto’s Rs 4,000-crore repurchase offer was robust. The BSE data indicates that there was a 6.89-fold oversubscription to the offer. Starting on March 6, the buyback was completed on Wednesday.

The corporation said that it will buy back up to 40 lakh shares, each worth Rs 10. The repurchase plan of Bajaj Auto was announced in January at a price of Rs 10,000 per share, which represents a 12.6% premium over the share price before the announcement.

In June 2022, Bajaj Auto offered shares at a price of Rs 4,600 per share after buying back shares at a cost of Rs 2,500 crore. Since then, the stock has had about 100% gains and a near-doubling in value, peaking at Rs 9,025 on March 8, 2024, a new 52-week high.

The repurchase entitlement for small shareholders, defined as residents with nominal share capital up to Rs 2 lakh, is seven shares for every 27 shares owned.

The corporation announced that it will be repurchasing shares via a tender. The repurchase is open to shareholders who were listed on the company’s records as of the record date, which is February 29, 2024.

Performance of Bajaj Auto shares during the previous year
In June 2022, Bajaj Auto offered shares at a price of Rs 4,600 per share after buying back shares at a cost of Rs 2,500 crore. Since then, the stock has had about 100% gains and a near-doubling in value, peaking at Rs 9,025 on March 8, 2024, a new 52-week high.

Bajaj Auto’s shares outperformed the Nifty50 index, which saw a 1% decrease, on March 13 by closing at Rs 8,360, almost unchanged from the previous close. Following the news of the repurchase, the stock has increased by over 7%. It has increased by a remarkable 121% in the last year, putting it in second place on the auto index after Tata Motors as the greatest performance.

The stock has lost more than 2% in the last week, but has gained 2.73 percent and 72% over the past month and six months, respectively. The stock has returned an incredible 122% over the last 12 months, but year-to-date gains are just 23.92%.