Bajaj Auto will buy back up to 46.94 lakh shares at ₹12,000 each, totaling ₹5,633 crore. This move aims to return surplus cash to shareholders and boost earnings per share.

Bajaj Auto Announces ₹5,633 Crore Share Buyback

Bajaj Auto Limited has received approval for a share buyback of up to 46.94 lakh equity shares at ₹12,000 per share.

Reader Takeaway: Buyback returns cash to shareholders; promotes boost EPS. Monitor record date closely.

What just happened

Bajaj Auto has secured shareholder and board approval for a substantial ₹5,632.80 crore share buyback. The offer price is set at ₹12,000 per equity share, and the buyback will be conducted through the tender offer route on a proportionate basis.

Why this matters

This significant capital return program aims to enhance shareholder value by returning surplus cash. With promoters not participating, the buyback is expected to reduce the total number of outstanding shares, potentially increasing earnings per share (EPS) for remaining shareholders.

The backstory

As of March 31, 2026, Bajaj Auto's standalone paid-up equity and free reserves stood at ₹33,264.48 crore, with consolidated reserves at ₹36,128.51 crore. The buyback size of ₹5,632.80 crore represents approximately 16.93% of standalone reserves and 15.59% of consolidated reserves, well within the regulatory limit.

What changes now

The company will announce a record date in due course to determine eligible shareholders for the buyback. A reservation of 15% of the buyback shares is allocated for small shareholders.

Risks to watch

Investors need to pay close attention to the announcement of the record date to ascertain their eligibility. Participation is voluntary, and shareholders should consider personal tax implications and the effect on their holding percentage.

Peer comparison

Bajaj Auto's buyback strategy reflects a disciplined approach to capital allocation, common among well-capitalized auto manufacturers aiming to reward shareholders while maintaining growth capital.

Context metrics (time-bound)

Buyback size: ₹5,632.80 crore
Offer price: ₹12,000 per share
Maximum shares to be bought: 46.94 lakh
Standalone reserves (Mar 31, 2026): ₹33,264.48 crore
Consolidated reserves (Mar 31, 2026): ₹36,128.51 crore

What to track next

Investors should await the official announcement of the record date and the detailed letter of offer, which will provide instructions for tendering shares.