Bajaj Auto Shares At Life High On Rs 4,000 Crore Share Buyback Approval

Shares of Bajaj Auto Ltd. rose to all time high on Tuesday after its board approved a Rs 4,000 crore buyback through a tender offer.

The company's board on Monday approved the buyback of 40 lakh fully paid-up equity shares of face value Rs 10 each at Rs 10,000 apiece. In volume terms, the buyback represents 1.41% of the total number of equity shares of the company.

This is the second share buyback by the Pune-based two-wheeler maker in the past couple of years. The last buyback initiated by the company was in July 2022, when Bajaj Auto bought back shares worth Rs 2,500 crore at Rs 4,600 apiece through the open market.

Shares of the company rose as much as 5.94% to 7,399 apiece, to touch record high. It pared gains to trade 5% higher at Rs 7,333.35 apiece as of 9:17 a.m. This compares to a 0.61% advance in the NSE Nifty 50 Index.

It has risen 102.54% in the last 12 months. Total traded volume so far in the day stood at 49 times its 30-day average. The relative strength index was at 74, indicating the stock maybe overbought.

Out of 46 analysts tracking the company, 26 maintain a 'buy' rating, 12 recommend a 'hold', and 8 suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 98.6%.