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Indian vehicle manufacturer Bajaj Auto has announced that it is considering a proposal for buyback in its upcoming Board meeting.
Bajaj Auto Limited is an automobile manufacturing company that makes motorcycles, scooters, and auto rickshaws. Being one of India's largest producers and exporters of automobiles it has several famous vehicles in its portfolio such as the RE and Maxima Z in auto rickshaws, Pulsar and Dominar in two-wheelers, and the Qute in four-wheelers.
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"This is to inform you that the meeting of Board of Directors of the Company is scheduled to be held on Tuesday, 14 June 2022, inter-alia to consider a 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," the regulatory filing of the company read.
The last time the company proposed a buyback was in 2000 when the company bought back 18 million shares at a price of Rs 400 per share. The company recently reported a 59% YoY growth in domestic sales while its exports contracted by 17.5%.
Yesterday, the company's subsidiary, Chetak Technology Ltd. inaugurated its EV manufacturing plant in Akurdi which is reported to have an investment of Rs 750 crores behind it. Rajiv Bajaj, MD of Bajaj Auto, mentioned that the company is unable to meet the market demand due to supply chain issues and is hoping to produce 5,000 chetak scooters every month.
The stock is up by 7.35% v/s NIFTY 50 down by -0.33% in the last 1 month. The stock wasn't spared as it faced a terrible decline in late February when Russia launched its assault on Ukraine. However, the stock has shown robust recovery as it closed at Rs 3,881 on Friday, reporting a growth of 17.7% since March.
-Article by Aman Agarwal & Krishna Singla.
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