Business

IIE DIGITAL DESK ; Mumbai, June 29: Bajaj Auto has officially announced the schedule for its much-anticipated share buyback programme, which will open for subscription on July 1, 2026 and remain available for eligible shareholders until July 7, 2026. The buyback decision follows approval from shareholders through a postal ballot, marking one of the largest capital return initiatives by the company in recent years. 

The automobile major will repurchase up to 46.94 lakh fully paid-up equity shares at a fixed price of ₹12,000 per share under the tender offer route. The total buyback size stands at approximately ₹5,633 crore, excluding transaction costs, and represents around 1.68% of the company’s total equity capital. 

The record date for determining eligible shareholders was June 24, 2026. Only investors whose names appeared in the company’s records on this date are allowed to participate in the buyback process. Shares purchased after the record date will not be eligible for tendering under this offer. 

The buyback window, eligible shareholders can submit their shares through the stock exchange mechanism. If the offer is oversubscribed, the company will accept shares on a proportionate basis, and any remaining shares will be returned to investors’ demat accounts.

Market analysts note that such tender offers often attract strong participation due to the premium buyback price compared to prevailing market levels, though final gains depend on the acceptance ratio.

A share buyback is typically viewed as a signal of strong financial health and confidence in future cash flows. It also helps improve earnings per share (EPS) by reducing the number of outstanding shares in the market.

Bajaj Auto’s latest move follows its previous ₹4,000 crore buyback in 2024, reflecting a continued focus on rewarding shareholders through capital return strategies.

The ₹12,000 per share buyback price offers an attractive premium, investors are advised to evaluate acceptance ratios, tax implications, and post-buyback stock performance before making participation decisions.

The tender window from July 1 to July 7 is expected to draw significant attention from retail as well as institutional investors given the size and pricing of the offer.