Bajaj Auto board may approve share buyback issue

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Bajaj Auto Limited remains an Indian multinational automotive manufacturing company. It is the world’s third-largest motorcycle manufacturing company and the second-largest one in India. According to the source, the board of Bajaj Auto will consider a buyback of its fully paid-up shares.

Further, the board members may discuss the buyback issue in the board of directors meeting which will conduct on June 14, 2022.

The company went for a buyback issue in 2000. At that time, around 18 million equity shares get approval from its shareholders. Moreover, per equity share is approved for  Rs. 400 each.

From FY08 through FY22, Bajaj has paid its shareholders dividends of Rs. 20 per share, with the amount increasing each year. As of the end of FY22, the company’s dividend payout rose from Rs. 289 crores to Rs. 4,051 crores.

Today, Bajaj Auto share price raised around 2% in the morning session trade. At the end of the day, the share price closed at 3,877 with a loss of 0.043%.

Bajaj Auto reported lower-than-expected sales data for May. Nomura India Securities expected 3.12 lakhs sales for May, but sales reached 2.75 lakhs.

During the past month, sales volumes increased by just 1 percent year-over-year and dropped more than 34 percent compared to levels before the pandemic.

The revenue of Bajaj Auto Ltd. grew by 10% in the March 2022 quarter, from Rs. 1,332 crores to Rs. 1,469 crores, compared with the same quarter last fiscal. In addition to the higher profit, there were exceptional items of Rs. 315 crores resulting from the government of Maharashtra funding an incentive program.

For the period under review, the company’s operating revenues fell 7% to Rs. 7,975 crores.

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