Bajaj Auto Limited Buyback 2024

Bajaj Auto Limited is a leading Indian manufacturer of motorcycles, scooters, and auto-rickshaws, part of the Bajaj Group. It sold over 18 million motorcycles in more than 70 countries; India’s top motorcycle exporter with two-thirds of its bikes sold internationally. It is world’s largest manufacturer of three-wheelers and the first in its category to achieve a market capitalization of INR one trillion. It offers a wide array of products including motorized two and three-wheelers, home appliances, wind energy, special alloys, cranes, and financial services like insurance and asset management. Bajaj Group has a market capitalization of approximately Rs. 8,55,000 crores (US$ 105 billion), encompassing 40 companies and around 36,000 employees

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Feb 29 2024
Buyback Opening Date: Mar 06 2024
Buyback Closing Date: Mar 13 2024
Buyback Offer Amount: ₹ 4000 Cr.
Date of Board Meeting approving the proposal: Jan 08 2024
Date of Public Announcement: Jan 08 2024
Buyback Offer Size: 1.41%
Buyback Number of Shares: 40,00,000
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 10000 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 40,00,000 (Forty lakhs) equity shares of the Company (representing 1.41% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 10,000/- (Rupees Ten Thousand Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 4,000 crores/- (Rupees Four Thousand Crores Only)

Salient financial parameters:

Particulars (In Cr) Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales + 30,358 29,919 27,741 33,145 36,455
Expenses + 25,160 24,809 22,803 27,886 29,991
Operating Profit 5,198 5,109 4,938 5,259 6,465
OPM % 17% 17% 18% 16% 18%
Other Income + 2,028 1,832 1,570 2,671 1,703
Interest 4 3 7 9 40
Depreciation 266 246 259 270 286
Profit before tax 6,956 6,692 6,241 7,652 7,842
Tax % 29% 22% 22% 19% 23%
Net Profit + 4,928 5,212 4,857 6,166 6,060
EPS in Rs 170.29 180.11 167.85 213.08 214.17
Dividend Payout %
35% 67% 83% 66% 65%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of  Bajaj Auto Limited in Demat or physical form as on the record date [29-02-2024]. 2. Once you have shares in Demat, you can participate in the buyback process which is opening from [06-03-2024] by selling your shares through your broker on NSE or BSE. 3. Then on [13-03-2024], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 20 Shares at CPM of Rs. 7110 (2,00,000/10,000)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 142200 142200 142200 142200
No. of Shares Buyback 6 10 15 20
Buyback Profit 17340 28900 43350 57800
Profit% 12.19% 20.32% 30.49% 40.65%

96 Comments

    Bajaj Auto March 2024 Buy back

    Actual ER: 7 out of 27 (25.92 %)

    Too Good ( more than expected)

    Huge Cheers for entire BBA Community

    Bajaj Auto Buyback March 2024

    Actual ER: 7 out of 27 (25.92 %)

    Too Good ( more than expected)

    Huge Cheers for entire BBA Community

    Bajaj Auto Buyback March 2024

    Actual ER: 7 out of 27 (25.92 %)

    Too Good ( more than expected)

    𝔹𝔸𝕁𝔸𝕁 𝔸𝕌𝕋𝕆 𝔹𝕌𝕐𝔹𝔸ℂ𝕂 𝕌ℙ𝔻𝔸𝕋𝔼𝕊

    Bajaj Auto Tender Period announces

    🔅 Opens From 06/03 To 13/03

    🔅Entitlement for Small Shareholder “5 sh out of 23 or 6 sh out of 25”.

    🔅Settlement Dt. 20/03

    ▪️BB Price : ₹10,000/sh

    ▪️CMP : 8,200/sh

    𝔹𝔸𝕁𝔸𝕁 𝔸𝕌𝕋𝕆 𝔹𝕌𝕐𝔹𝔸ℂ𝕂 𝕌ℙ𝔻𝔸𝕋𝔼𝕊

    Expected Entitlement for Small Shareholder may be 4/5 shares out of 25.

    After announcement of Buyback, share price moved in upwards direction from ₹7,000 to ₹8,500 so it will not be a surprise would ER be around 6 shares

    ▪️BB Price : ₹10,000/sh

    * 𝙰𝚕𝚕 𝚌𝚊𝚕𝚌𝚞𝚕𝚊𝚝𝚒𝚘𝚗𝚜 𝚊𝚛𝚎 𝚝𝚎𝚗𝚝𝚊𝚝𝚒𝚟𝚎, 𝚋𝚊𝚜𝚎𝚍 𝚘𝚗 𝚙𝚛𝚎𝚜𝚎𝚗𝚝 𝚖𝚊𝚛𝚔𝚎𝚝 𝚜𝚌𝚎𝚗𝚊𝚛𝚒𝚘 & 𝙲𝙼𝙿.

    BAJAJ AUTO Buyback

    Tomorrow being 28 is the last Date to buy Stock to Participate in the Buyback, Estimate⬇️

    • Retail Entitlement Ratio & Acceptance Ratio Expected to be same

    •• Retail Entitlement can be 3 or 4 out of 22 / 23

    ••• 2 out of 5 Single Shares May Get Accepted in Buyback

    •••• In Many Buybacks all Single Shares are Accepted but unlikely in this case

    ••••• It is likely to happen due to Heavy Addition of Single Share Participants
    SOURCES GK

    🚨𝔹𝔸𝕁𝔸𝕁 𝔸𝕌𝕋𝕆 𝔹𝕌𝕐𝔹𝔸ℂ𝕂 𝔼𝕏ℙ𝔼ℂ𝕋𝔼𝔻 ℝ𝔼𝕋𝔸𝕀𝕃 𝔼ℝ & 𝔸ℝ🚨

    🔅 Exp’t Retail Entitl : around 4 shares out of 23

    🔅 Exp’t Retail Accpt. : around 4 shares out of 23
    (If Share Price will be around CMP)

    •̲ Record Date : 29/02/24

    •̲ Last Dt. To Buy : 28/02/24

    * 𝙰𝚕𝚕 𝚌𝚊𝚕𝚌𝚞𝚕𝚊𝚝𝚒𝚘𝚗𝚜 𝚊𝚛𝚎 𝚋𝚊𝚜𝚎𝚍 𝚘𝚗 𝚌𝚞𝚛𝚛𝚎𝚗𝚝 𝚖𝚊𝚛𝚔𝚎𝚝 𝚜𝚌𝚎𝚗𝚊𝚛𝚒𝚘 𝚊𝚗𝚍 𝚜𝚑𝚊𝚛𝚎 𝚙𝚛𝚒𝚌𝚎.

    As per some reliable sources this time 1 share accpetations is not confirm 2/3
    Retailrs are lucky for 1 share statergy
    Try buy 2 share & 1 share will go in buyback is good statergy …..

      A rough estimate gave me an ER of around 4%. This can vary because of the recent addition of shareholders.

        Mohsin ji, did you calculate the ER based on the nominal share capital calculation shared by AANKIT ji previously? Or any other methods. Thanks.

        Just calculated as per market rate and number of holders.

        It can be 8% or 16% cant say exactly

    🚨 𝔹𝔸𝕁𝔸𝕁 𝔸𝕌𝕋𝕆 𝔹𝕌𝕐𝔹𝔸ℂ𝕂 ℝ𝔼ℂ𝕆ℝ𝔻 𝔻𝔸𝕋𝔼 𝔸ℕℕ𝕆𝕌ℕℂ𝔼𝕄𝔼ℕ𝕋 🚨

    🆁🅳 🅳🆃 . : 29 Feb 2024

    💎BB Price : ₹10,000/sh

    💎BB Size : ₹4,000 Cr.

    💎Route : Tender

    🔅 Tentative Sett. dt. : Around 20 Mar 2024

    *𝙵𝚞𝚛𝚝𝚑𝚎𝚛 𝚍𝚎𝚝𝚊𝚒𝚕𝚜 𝚠𝚒𝚕𝚕 𝚜𝚑𝚊𝚛𝚎 𝚜𝚘𝚘𝚗…

    🚨𝔹𝔸𝕁𝔸𝕁 𝔸𝕌𝕋𝕆 𝔹𝕌𝕐𝔹𝔸ℂ𝕂 𝕌ℙ𝔻𝔸𝕋𝔼 🚨

    B̲u̲y̲b̲a̲c̲k̲ R̲e̲c̲o̲r̲d̲ d̲a̲t̲e̲ w̲i̲l̲l̲ a̲n̲n̲o̲u̲n̲c̲e̲ a̲n̲y̲ t̲i̲m̲e̲ s̲o̲o̲n̲…

    💎BB Price : ₹10,000/sh

    💎BB Size : ₹4,000 Cr.

    💎Route : Tender

    ➡️ CMP : ₹8400

    🔅 Tentative Sett. dt. : Mid of Mar 2024

    RECORD DATE KAB AYEGA LAST TIME TO OPEN OFFER THA ISS BAR TENDER OFFER AYA HAI ACHHA HAI NAHI TO RETAILER KA LUKSAN HO JATA

    Postal ballet voting end date 05/03/24, as per this what may be the record date

      The company will generally announce the record date within a week after the postal ballot voting.

        Daddu Ram ji you are correct. The E-voting for buyback got completed and the record date will be announced soon. (Source: BSE website)

    I have a doubt.

    If I have 300 shares of bajaj auto and I transfer 100 shares to my minor sons account. Then I will be having 200 shares. So then will I be considered as a retail investor for buyback eligibility.

    I am the Guardian of my minor sons account

      No you wont be under reserved if you hold 200 shares on Record date. You would have to transfer 275 shares to your son’s account.

      I understand that accounts under same PAN are clubbed to determine the limit, meant for retailer status.

      I don’t think so. I am guessing it might reach 8000 Rs. I will be happy if your words come True 🙂

      Many people are going for one share strategy. I have seen many of my friends opening Demat Accounts for them and for their family members. Guessing AR would be a challenge. Experts please comment.

      🚨 𝔹𝔸𝕁𝔸𝕁 𝔸𝕌𝕋𝕆 𝔹𝕌𝕐𝔹𝔸ℂ𝕂 𝔸𝕃𝔼ℝ𝕋 🚨

      💎BB Price : ₹10,000/sh

      💎BB Size : ₹4,000 Cr.

      💎Route : Tender

      🔅 Tentative Rd dt. : 22-26 Feb 2024

      🔅 Tentative Sett. dt. : Mid of Mar 2024

      *𝙵𝚞𝚛𝚝𝚑𝚎𝚛 𝚍𝚎𝚝𝚊𝚒𝚕𝚜 𝚠𝚒𝚕𝚕 𝚜𝚑𝚊𝚛𝚎 𝚜𝚘𝚘𝚗
      received from expert
      Wait & watch

      Kaveri seed Board meeting held on 5th January and Record date declared on 23 Feb, and Bajaj Auto board meeting held on 8th Jan.
      Thisay be the calculation….

    Acceptance Ratio Calculation on Bajaj Auto Buyback is getting viral 🙂 . Good/interesting buyback to watch out for and see whose calculation wins.

    I have 200 Shares Of Bajaj Auto,

    In Which Category I fall For BuyBack.. Can Anyone Help Me ???

    Thank You.

    I purchased 10 shares@ av. rate 7147 for buy back. Whether a special resolution is required by Co.? This is just to guess the time frame.

    What is 1 share strategy in buyback.

    It means iff I purchased 1 share and tender it , there is 100% chance that my share would be sold in buyback ?

    Please clarify it.

        Very high chance, but not guaranteed. I had one case where it was not accepted. Luckily, I could sell it at a price higher than the buyback price few months later.

      If are not sure about 1 sharr strategy then you have buy 2 share then 1 share can go in buyback 100% it’s expert advice & reliable source
      Now it’s your choice

    Many people are saying ki its on company wether they want to accept 1 share or not , is it true ?

      Its definitely not on company, but rather on the number of applicants. If number of applicants > 600,000, of course 1 share won’t be accepted (Assuming the overall holding by individual investors stay below 15%).

      Not at all. I suggest you read the offer doc. The way it works is: First, each applicant’s entitlement is accepted. Then, 1 share of all those who got 0 entitlement is accepted. Normally, those who hold 1 share falls in this category. Thereafter, the shares of those who applied over their entitlement are accepted in a proportional manner.

    Personally, think its overpriced, and I don’t like the promotors. But am tempted. I am giving it last priority after KSCL, Chambal & Dhampur.

    Or maybe just do 1 share via all family accounts. That looks like a good bet.

      Which begs a question – what happens if you tender one share each from multiple demat accounts belonging to you? I have never found the 1 share strategy attractive, but this one appears to be different.

      Why I ask this is – I had tcs shares in 2 different demat accounts (while not exceding the 2L limit) . I got different ER and AR for those.

      If no on knows for sure, I think I’ll just do it – may be an interesting experience.

        Multiple Demat accounts Linked to same PAN won’t work for applying one share strategy from different demat accounts

    i seek clarification on 1 share strategy. Does it mean, I buy one share today and surrender for buyback, It will be accepted? or I have buy more than 1 share and surrender only 1 share for buyback? experts please advise.

    Experts please suggest based on your experience with previous buybacks. Does this share cross 8000 before record date

    Only one share strategy will work. Rest mathematics will fails.

    Only 6 lacs shares are reserved.

    I think I lakhs shareholders will apply under 1 share strategy

      As per trendlyne by dec 23, retailer share holders <2lakh capital, 187920 shareholders having 15397811 ( 1 crore 53 lakh)shares. Only 6 lakh shares are reserved in buyback. I think only one share purchase is better.

      That no is calculated according to face value and not the nominal value

      So that is not the correct no to estimate er

    Expected Minimum Entitlement Ratio for Small Shareholders (below Rs 2 lakhs):

    Dhampur Sugar Jan 2024: 2.25 %
    Kaveri Seeds Jan 2024: 30.04 %
    Chambal Fertilisers Jan 2024: 11.22 %
    Bajaj Auto Jan 2024 : 15 %

      Hi Aankit Ji, Can you tell us how you have arrived Entitlement Ratio of Bajaj auto as 15% ?

        Check Annual Report for year ending March 2023.

        (1) 1 to 500 shares category Share holders :

        1.96% of total equity capital or 55,42,747 shares are held by 2,08,535 investors.

        Average shares held by each share holder in this category comes to around 27 (means many of investors won’t fall in category of small share holders (holding 20 to 25 shares)

        (2)We will have to find out how many of them are small share holders (20 to 25 shares).

        It is guess work.

        On conservative side, I have assumed it to be 1.40% of equity capital and remaining 0.56% to be HNI. Based on average share holding of 27, I know small share holder % will be lesser than 1.40%.

        (3) Offer size is 1.41%
        Reserved (15%) Small Shareholder Quota: 0.21 %
        Actual Small Shareholders: 1.4%

        EER: 0.21 x 100 / 1.4 = 15%

        I hope, this explanation solved your query.

          Thanks for the explanation. Please find below my calculation of ER of 5%.

          As per shareholding pattern Dec 2023 filed in BSE,

          Resident Individuals holding nominal share capital up to Rs. 2 lakhs : 1,53,97,811

          15% of Approved Buyback Shares: 6,00,000

          So, ER = 6,00,000 / 1,53,97,811 = 3.89% .

          And i agree this small holders base will decrease as buyback price is Rs.10,000. Lets hope for the best and luck 🙂

            @ VSK

            Nominal Share Capital means share value at Face Value of Rs 10 & figure of 1,53,97,811 shares include all Retail Share holders holding shares of Bajaj Auto right from 1 to 20,000 in their demat account.

            We need ONLY those share holders, who are holding shares less than 20 to 27 as on record date.
            We willl have to remove all share holders holding shares more than 27 from figure of 1,53,97,811 & then can get correct entitlement ratio for small share holders.

      If this calculation is correct, then Bajaj should have the best expected return if you adjust the buyback premium for expected entitlement / acceptance .

      What Ankit ji is saying about face value and nominal value is correct

      Haven’t analysed the annual report so can’t comment on ER no.s

      Also Ankitji, add people like us who would be entering this for the sole purpose of buy ack
      If acc to match 23 it’s 15%< it is sure to come down to 10% However keep one thing in mind Don't expect much difference here in er and ar Premium is good 30% so a lot of people will enter and almost all will tender

        @ AASHISH Ji,

        Thanks a lot for acknowledging my calculation.

        I was wondering to see so many analysts in social media claiming EER to be ONLY 3 or 4 % based on no of share holders with nominal capital) &eventually creating Negative vibes about Good BUY BACK ARBITRAGE opportunity.

      Bajaj Auto Buyback March 2024

      Actual ER: 7 out of 27 (25.92 %)

      Too Good ( more than expected)

    It was also mentioned that the Board / Buyback committee may,
    till one working day prior to the record date, increase the Buyback price and decrease the
    number of Equity Shares proposed to be bought back, such that there is no change in the
    Buyback Size.

    BAJAJ AUTO LTD Tender Buyback Approved

    Buyback Price : 10,000 ₹
    Today’s Closing Price : 6,984 ₹ (43% Gap)

    Buyback Size ₹ : 4,000 Crore
    Buyback Size in Shares : 40,00,000 Shares

    Retail Quota : 6,00,000 Shares
    Record Date for Buyback : To Be Announced

    Buyback price – Rs. 10000
    Buyback size – 4000 Crores rupees (representing 1.41% of the total number of Equity Shares of the Company)
    Record date – To be declared

    Tender Offer @ 10,000/-
    Shares to be bought back 40000
    Size 1.41% of total equity

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