Shares of Bajaj Auto Ltd. rose to a fresh life high on Friday after its shareholders approved a buyback of 1.41% equity shares for an aggregate amount of Rs 4,000 crore through a postal ballot.
The two-wheeler major's shareholders approved the buyback of 40 lakh shares for a price not exceeding Rs 10,000 per share through the tender offer route, an exchange filing said on Thursday. The buyback is set at a 15% premium to the current market price.
The board had approved the second buyback by the company on Jan. 8. The buyback needs to be completed within a year of receiving approval from shareholders.
Bajaj Auto had bought back shares worth Rs 2,500 crore in July 2022 through the open market.
In the shareholders' meeting, it was also approved to form a buyback committee that will have the power to make decisions related to the buyback.
Shares of the company rose as much as 3.84% before paring gains to trade 2.36% higher at 10:39 a.m., compared to a 0.54% advance in the NSE Nifty 50.
The stock has risen 112.84% in the last 12 months. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 85 indicating it was overbought.
Of the 45 analysts tracking the company, 21 maintain a 'buy' rating, 12 recommend a 'hold,' and 12 suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 119.8%.
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