Bajaj Auto Purchase: Bajaj Auto, the homegrown motorcycle and tricycle maker, has said that the board will meet on Monday, June 27, 2022 to further discuss the proposal to repurchase fully paid-up shares of the company. “We would like to inform you that a meeting of the company’s board of directors will be held on June 27 to further discuss the proposal to repurchase fully paid-up shares of the company,” Bajaj Auto said in a statement. exchange application on June 22.
The price and other details of the buyback will be revealed after this meeting.
Earlier, the company had postponed the buyback plan in a meeting held on June 14. “We would like to inform you that the company’s board of directors decided at its June 14 meeting that further deliberations are needed to reach a decision. on the repurchase proposal, and accordingly postponed the matter,” it had said as the repurchase plan was postponed.
A share buyback, also known as a share buyback, is a corporate action to buy back its own outstanding shares from its existing shareholders, usually at a premium to the prevailing market price. It can be an alternative tax-efficient way to return money to shareholders. Share buybacks reduce the number of shares in circulation, which can increase share value and earnings per share (EPS).
The company last went for such a move in 2000 when shareholders approved the repurchase of up to 18 million shares at a price of Rs 400 each.
Bajaj Auto Dividend
In a press release, the car company also announced the payment of dividends to its investors at a rate of Rs 140 per share. “In accordance with the company’s dividend distribution policy, the board of directors has approved/recommended a dividend at the rate of Rs. 140 per share (1400 percent) of the par value of Rs 10 each in shares for the fiscal year ended March 31. Said dividend, if declared by shareholders at the next General Meeting, will be on or about July 30,” Bajaj Auto informed of dividend payment.
“The dividend, if declared, will be paid to shareholders of equity whose names are listed in the Company’s Register of Members or in the Registers of the Custodians as beneficial owners of the shares on July 1, which is the record date which is established for the purpose,” it read.
Bajaj has been paying dividends to shareholders since FY08, with the amount increasing each year: from Rs 20 per share in FY08 to Rs 140 at the end of FY22. The total dividend payout in the same period has increased from Rs 289 crore to Rs 4,051 crore at the end of FY22.
Bajaj Auto Q4 Results
Bajaj Auto Ltd reported a 10 percent net profit growth for the March 2022 quarter at Rs 1,469 crore versus Rs 1,332 crore in the corresponding quarter of the previous fiscal. The higher profit was mainly due to an exceptional item of Rs 315 crore which was accrued as an incentive claim from the Maharashtra government under an incentive scheme.
However, operating income fell by 7 percent to Rs 7,975 crore in the reporting period. The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) fell 10 percent to Rs 1,396 crore, while margins shrank to 17.5 percent. Bajaj Auto reported marginal growth in total vehicle sales of 2,75,868 units in May, compared to 2,71,862 vehicles sold in the same period a year ago.
Bajaj Auto Stock Price History
In the latest session, the price closed at Rs 3,824.50, up 1.05 percent. Shares of Bajaj Auto are up more than 14 percent so far in 2022 (YTD), while auto stocks are down about 11 percent in a year.
Get all the latest news, breaking news, watch top videos and live TV here.