Bajaj Auto launches cash buyback of up to 46.94 lakh shares for Rs 5,632.8 crore

What Bajaj Auto announced

Bajaj Auto Limited filed a Letter of Offer with the BSE and NSE on 29 June 2026, confirming its intention to repurchase up to 46,94,000 fully paid‑up equity shares. Each share, having a face value of Rs 10, will be bought back at a cash price of Rs 12,000 per share, amounting to a maximum aggregate outlay of Rs 5,632.8 crore (excluding transaction costs). The buyback will be executed on a proportionate basis through a tender offer, as prescribed under the Companies Act, 2013 and SEBI (Buy‑back of Securities) Regulations, 2018.

The offer was first announced publicly on 19 June 2026 and reiterated in a letter dated 22 June 2026. The formal Letter of Offer, dated 29 June 2026, provides the detailed schedule and procedural requirements for shareholders wishing to participate.

Buyback terms and eligibility

• Number of shares: Up to 46,94,000 shares, representing 1.68% of the total paid‑up equity share capital.
• Buyback price: Rs 12,000 per share, payable in cash.
• Total cash commitment: Up to Rs 5,632.8 crore (₹ 5,632.80 crore), exclusive of transaction costs.
• Record date: 24 June 2026 – shareholders on this date are eligible to tender shares.
• Proportionate allocation: If the total tendered shares exceed the maximum, the company will allocate shares proportionately among all tendering shareholders.
• Funding source: The buyback will be funded from the company’s free reserves and aggregate of fully paid‑up equity share capital, as per the latest audited financial statements.

The buyback is being undertaken under Article 40 of Bajaj Auto’s Articles of Association and Sections 68‑70 of the Companies Act, 2013, with all necessary approvals from SEBI, the Registrar of Companies, and the stock exchanges.

Schedule of the tender offer

Shareholders wishing to participate must submit their tender forms to the appointed Registrar before the 7 July 2026 deadline. Settlement of successful bids will occur on 14 July 2026.

Key facts at a glance

Why this matters for investors

The buyback reduces the number of shares outstanding, which can improve earnings per share and return ratios, provided the company’s earnings remain stable. Because the buyback is funded from free reserves, it does not increase debt and therefore does not alter the company’s leverage profile. The proportionate allocation mechanism ensures that all eligible shareholders have an equal chance to participate, but it also means that individual shareholders may receive fewer shares than tendered if demand exceeds the maximum size.

For shareholders who do not tender, the buyback may lead to a modest increase in their ownership percentage, as the total share count declines. The cash outflow of Rs 5,632.8 crore is material relative to the company’s balance‑sheet size, representing roughly 16‑17% of the aggregate of paid‑up equity share capital and free reserves, as disclosed in the latest audited statements.

Conclusion

Bajaj Auto’s cash buyback of up to 46.94 lakh shares, priced at Rs 12,000 per share, will be open from 1 July to 7 July 2026, with settlement on 14 July 2026. The offer is funded from free reserves and will be allocated on a proportionate basis to shareholders of record on 24 June 2026. The transaction is expected to be completed subject to standard regulatory approvals and the receipt of tender forms within the stipulated timeline.