Bajaj Auto announces Rs 5,633-crore share buyback at 16% premium: Check key things to know

Synopsis

Bajaj Auto announced its largest-ever share buyback worth Rs 5,633 crore, offering to repurchase up to 46.94 lakh shares at Rs 12,000 apiece — a premium of over 16% to the previous closing price. The buyback, representing 1.68% of the company’s paid-up equity capital.

Two-wheeler major Bajaj Auto on Wednesday announced its biggest-ever share buyback worth Rs 5,633 crore at a buyback price of Rs 12,000 per share, offering more than 16% premium over the stock’s previous closing price.

Bajaj Auto's board approved a plan to buy back up to 46.94 lakh shares, each with a face value of Rs 10, representing 1.68% of the total paid-up share capital, for an aggregate amount not exceeding Rs 5,633 crore.

The buyback will be conducted via the tender route, and all shareholders on the record date will be eligible to participate in the corporate action. The offer is, however, subject to shareholders’ approval at its upcoming Annual General Meeting (AGM).

Bajaj Auto’s board of directors also considered and approved the formation of a buyback committee, which can increase the buyback price or decrease the number of shares to be bought back till one day before the record date, without changing the overall buyback size.

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The record date to determine the eligibility of shareholders who can participate in the buyback process, along with other timelines and details such as entitlement ratio will be announced in due course, the two-wheeler major said. Additionally, investors also await the announcement of whether promoters and promoter group will participate in the buyback.

Bajaj Auto pre-buyback shareholding pattern

Promoters and promoter group held 55% stake in the company as on March 31, 2026. Banks, mutual funds, insurance companies and other Indian financial institutions held a 14.5% stake, while foreign investors owned nearly 10% stake. The remaining stake of around 21% was held by the general public, corporates and others. This is the shareholding pattern of the company prior to the buyback, which is likely to see some changes post the corporate action.

Bajaj Auto buyback history

Bajaj Auto earlier announced a Rs 4,000 crore buyback of shares in 2024 at a buyback price of Rs 10,000 per share. Back then, the shares of the company were trading at around Rs 6,980 apiece. The Rs 10,000 per share buyback price marked a premium of more than 43%.

In July 2022, it launched a share buyback worth Rs 2,500 crore at a buyback price of Rs 4,600 a share. The buyback announced yesterday marks the company’s third such corporate action in four years

Buyback of shares refers to a corporate action where a company repurchases its own shares from existing shareholders, mostly at a premium to the market price.

Bajaj Auto Q4 results

Bajaj Auto reported its highest-ever quarterly profit of Rs 2,746 crore for Q4 of FY26, marking a 34% jump from the Rs 2,049 crore profit reported in the same period last year. Revenue from operations rose 32% year-on-year (YoY) to Rs 16,006 crore in the March quarter, from Rs 12,145 crore in the corresponding quarter of the previous financial year. EBITDA jumped 36% YoY to Rs 3,323 crore, while EBITDA margin expanded 60 basis points to 20.8%.

Along with the Q4 earnings and share buyback, Bajaj Auto also announced a dividend of Rs 150 per share (1,500%) on equity shares with a face value of Rs 10 each for the financial year ended March 31, 2026. The record date for determining shareholder eligibility has been fixed as May 29, while the dividend will be paid on or around July 24, 2026.

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