Bajaj Consumer drops after board approves share buyback

Bajaj Consumer Care dropped 4.27% to Rs 234 after the company announced a share buyback of up to Rs 186.60 crore.

The board approved the buyback of up to 64.34 lakh equity shares (4.69% equity) as of 31 March 2025. The buyback will be executed via the tender offer route at Rs 290 per share, aggregating to a maximum outlay of Rs 186.6 crore. This represents 23.70% of standalone and 24.88% of consolidated free reserves and paid-up share capital, well within the SEBI-permitted limit of 25%.

The buyback offer price is 24% premium to the ruling market price.

The buyback is subject to shareholder approval through a special resolution via postal ballot. The promoters and promoter group have expressed their intention not to participate in the buyback.

As of 18 July 2025, Bajaj Consumers promoters held 40.95% stake.

Further, the board also approved a scheme of arrangement between Bajaj Consumer Care and its wholly owned subsidiary, Vishal Personal Care, to demerge the manufacturing and distribution business of the subsidiary into the parent company. The demerged unit accounted for Rs 52.51 crore in turnover in FY25, 99.23% of the subsidiary's revenue and 5.57% of Bajaj Consumer's standalone revenue.

The demerger aims to consolidate operations and improve supervision, realize synergies in cash flow and market reach, simplify structure and business processes, and enable independent strategy execution and investment opportunities.

There will be no change in Bajaj Consumers shareholding pattern, as no new shares will be issued. The scheme is subject to approval from the National Company Law Tribunal (NCLT) and other regulatory bodies.

Bajaj Consumer Care is engaged in the business of cosmetics, toiletries and other personal care products. It has presence in both domestic and international markets.

On a consolidated basis, Bajaj Consumer Care's net profit declined 12.93% to Rs 30.98 crore while net sales rose 5.34% to Rs 246.73 crore in Q4 March 2025 over Q4 March 2024.

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