Bajaj Auto defers share buyback proposal, stock declines over 6%

Company informs stock exchanges that its board 'has decided that further deliberations are required in order to take a decision on the proposal of buyback'

Two- and three-wheeler major Bajaj Auto on Tuesday informed stock exchanges that its board has deferred the stock buyback proposal. At 1455 hours on Tuesday, the company's scrip on BSE was trading 6.5% lower at Rs 3,619. 

"We wish to inform that the Board of Directors of the Company at its meeting held today i.e. 14 June 2022, has decided that further deliberations are required in order to take a decision on the proposal of buyback, and accordingly deferred the matter," said Bajaj Auto in a stock exchange filing. 

The company last went for share buyback in 2000, when shareholders approved the buyback of up to 18 million equity shares at a price of Rs 400 each.

Bajaj Auto has paid dividends to shareholders since FY08, with the amount going up each year: from Rs 20 per share in FY08 to Rs 140 at the end of FY22.