Bajaj Auto share buyback: Shares fell sharply

TeknikalRaman Finance & Business POSTED BY: Ranjeet Kumar PUBLISHED: Jun 15, 22

Investors are apprehensive as they await the final pricing of the Bajaj Auto share repurchase. On Tuesday, Bajaj Auto shares fell sharply in choppy trade

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after a critical meeting of the automaker's board of directors to discuss a proposed buyback of equities came to a halt.

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In a regulatory filing, the company's management stated that further thought was necessary.

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After the news, the Bajaj Auto stock plummeted in the final 30 minutes of the session

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concluding the day at Rs 3,684.4, down Rs 196.2 or 5.1 percent after gyrating within a narrow range around the flatline for much of the day

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The initial repurchase by the cash-rich corporation is expected to be at a hefty premium to the current stock price, according to analysts

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A share repurchase is seen to be a tax-effective manner of rewarding shareholders.

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