Bajaj Auto share buyback: Shares fell sharply
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
after a critical meeting of the automaker's board of directors to discuss a proposed buyback of equities came to a halt.
In a regulatory filing, the company's management stated that further thought was necessary.
After the news, the Bajaj Auto stock plummeted in the final 30 minutes of the session
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
The initial repurchase by the cash-rich corporation is expected to be at a hefty premium to the current stock price, according to analysts
A share repurchase is seen to be a tax-effective manner of rewarding shareholders.