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HomeNewsBajaj Auto's share buyback decision to be taken in board meet today

Bajaj Auto’s share buyback decision to be taken in board meet today


Homegrown Bajaj Auto’s board will meet on Monday, June 27, 2022 to further deliberate on the proposal for buyback of fully paid-up equity shares of the company. The auto major’s board earlier this month had deferred a decision on its proposed share buyback, after informing the stock exchanges on June 9 that its board would consider a proposal for buyback of fully paid-up equity shares at a meeting to be held on Tuesday, June 14.

“We wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Monday, 27 June 2022, inter-alia to further deliberate on the proposal for buyback of fully paid-up equity shares of the Company in accordance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018,” Bajaj Auto informed in an exchange filing last week.

A share buyback is a process when a company buys its own outstanding shares to reduce the number of shares available in the open market.

The auto stock is going to turn ex-dividend this week as the board of directors has fixed 1st July 2022 as record date for finalisation of eligible shareholders for dividend payment. The company has already announced a dividend of 140 (1400 per cent) for the financial year 2021-22, subject to approval of shareholders.

Bajaj Auto Ltd reported 10% growth in net profit for the March 2022 quarter at 1,469 crore as against 1,332 crore in the corresponding quarter of the previous fiscal. The higher profit was mainly due to an exceptional item of 315 crore accrued as incentive receivable from the Maharashtra government under an incentive scheme.

Revenue from operations, however, fell 7% to 7,975 crore for the period under review. The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) fell 10% to 1,396 crore, while margins shrank to 17.5%. Bajaj Auto reported a marginal growth in its total vehicle sales at 2,75,868 units in May, as against 2,71,862 vehicles sold in the year-ago period.

Shares of Bajaj Auto have gained over 18% in 2022 (YTD) so far, whereas the auto stock is down about 8% in a year’s period.



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